Solana [SOL] reaches range high again, can a breakout occur?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Solana snowballed to range high again with bulls determined to extend gains.
- Open Interest rose by 7.26% over the past day to signal bullish conviction in the futures market.
Solana’s [SOL] bullish rally from the $22 support level reached the range high of $25 over the past 24 hours. This price level has stalled the bullish rally on two previous occasions which further highlights the level’s importance to a full-blown bullish breakout.
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Consequently, the likelihood of bulls scaling this hurdle at the third attempt could be dependent on Bitcoin [BTC] rising above the $29.5k price threshold.
Enthusiastic bulls make another attempt to flip key price level
The double bullish candles on the 12-hour timeframe over the past 24 hours took Solana to the $25.3 resistance. Despite the slight pullback, the structure remained bullish with price trending higher after the recovery at the $22 bullish order block.
The sustained bullish momentum combined with the signals from the on-chart indicators highlighted buyers’ advantage.
The Chaikin Money Flow (CMF) surged higher, highlighting the capital inflows and significant bullish momentum. The Relative Strength Index (RSI) dipped over the past 48 hours but recovered to stay above the neutral 50. This showed that demand existed for SOL.
While the on-chart evidence supported bulls breaking above the resistance level, sellers cannot be disregarded, due to the previous range-bound price movement.
The futures market highlighted bullish conviction
The bullish conviction in the derivatives market was highlighted by the Open Interest’s 24-hour trend. According to Coinalyze, the OI rose by 7.26% over the past day. This suggested that buyers were pushing for more gains.
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Likewise, the Funding Rate stayed positive as well. This hinted that Solana bulls could break out past this zone on the third try.