Solana: Can bulls reach $26?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- SOL’s pullback eased near 50% Fib level and May high of $23.
- Sentiment improved, but funding rates wavered slightly.
Solana [SOL] dropped below $25 on 25 July to price in the expected hawkish stance from the Fed decision. However, after confirmation of the 25-basis point Fed rate hike on 26 July, the level was quickly reclaimed.
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At the time of writing, SOL rested above the 61.8% Fib level of 24.74 and could aim at the immediate resistance level.
Meanwhile, Bitcoin [BTC] quickly reclaimed the $29k price zone after dropping to $28.86k. However, it was yet to cross the previous range-low of $29.5k, which could complicate a further upside rally for SOL.
Will bulls advance further?
SOL’s pullback from $32 to $23 saw the altcoin shed over 25% in value. However, the corrective rebound could see SOL reverse some of the recent losses inflicted by the pullback.
At the time of writing, SOL reclaimed another key 61.8% Fib level of $24.74. That level could set bulls to aim at $26 or $26.85. However, such an upside move depends on BTC crossing the $29.5k mark.
However, if BTC falters at $29.5k, SOL could breach the 61.8% Fib level of $24.74 or tread lower towards the $23 or 50% Fib level ($24.74).
Meanwhile, the CMF (Chaikin Money Flow) climbed above the zero mark, denoting improved capital inflows. Similarly, the RSI (Relative Strength Index) rebounded from the oversold territory and crossed above the neutral level, emphasizing improved buying pressure.
Sentiment and development activity improved, but…
How much are 1,10,100 SOLs worth today?
SOL’s weighted sentiment and development activity improved, as highlighted above. While the bullish signals could favor a further upside rally, fluctuating funding rates could complicate matters for bulls.
Funding rates have recently fluctuated and could delay an extra strong recovery if the trend repeats. So traders can track this front alongside BTC price action, especially a move beyond $29.5k.