Solana – How weak demand might affect its price targets of $188 and $206
The 4-hour chart highlighted a key short-term level that could offer clues about a Solana rally.
Key Takeaways
Even though Solana flipped a key resistance zone to support, it might be unable to defend it. The selling pressure behind Bitcoin, combined with the weak buying pressure on Solana, might see SOL bulls cede its recent gains.
Solana [SOL] has been slowly trending higher on the price charts. The bulls managed to recapture the $180-area as support. Combined with the bullish market structure on the daily timeframe, the prospects appeared good for SOL buyers at press time.
A Solana whale accumulated 60,000 SOL worth $11.23 million on Thursday, 21 August. Futures data also highlighted bullish promise in the short-term. In the long run, the high throughput of Solana has been garnering institutional attention too.
For the altcoin to climb higher, Bitcoin [BTC] halting its retracement would help. At the time of writing, BTC was trading at $113.2k, just above the $112.4k support. The $64.4 million worth of Bitcoin sale by Ark 21Shares stirred some market fear as well.
Solana flips $180 to support, but volume is a question mark
The swing points on the 1-day chart were marked at $155.8 and $206.3. A move beyond either level would dictate the next trend direction. On the price charts, SOL’s price was between these two levels, having flipped the resistance from May to support.
The market structure was bullish and the RSI traced upward momentum. However, the OBV has been relatively flat. The buying volume would need to trend higher in the coming days to offer bulls hope of a move to $206 and higher.
On the 4-hour chart, the OBV was not trending higher, with the volume relatively low during the pullback from $206 to $180. The RSI was also neutral.
However, the price action, which seemed bearish, was beginning to turn bullish at press time. The $188-level needs to be broken to shift the H4 structure bullishly. This would be a sign that the $180-level is in control of the buyers and they may be ready for further gains.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
