Solana storms make a move past $21, has the next rally begun?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Solana [SOL] had a fantastic start to the week’s trading after it broke out past the lower timeframe local highs at $21.35 on 10 April. This came alongside a bullish Bitcoin [BTC] move that took the king of crypto above the $29.2k resistance.
Realistic or not, here’s SOL’s market cap in BTC’s terms
On the four-hour chart, Solana showed a strong bullish structure. It also had a bullish bias on the longer-term chart, and buyers will be hoping SOL can rise to $27 this week.
The Value Area High poses short-term resistance for SOL
The Visible Range Volume Profile showed the Value Area High and Low (blue) at $23.87 and $19.82 respectively, which are short-term resistance and support levels. The Point of Control (red) was at $20.7, and represented a strong support level for Solana as well.
The indicators also supported the idea that Solana would register further gains. The Relative Strength Index (RSI) shot above neutral 50 on 10 April to indicate strong bullish momentum was witnessed. The Chaikin Money Flow (CMF) also spiked higher to stand at +0.2, showing significant influx of capital into the Solana market.
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Combined with the bullish structure of SOL after beating the local highs at $21.35, the mood was euphoric for the bulls. Long-term investors could anticipate a steady run higher for Solana in the coming months, which will be feasible if bulls can push prices above $27 and $30.
More than $100 million floods into the futures markets
Data from Coinalyze showed that speculators awaited a massive move upward for Solana. This was because it moved past the $20.7 mark on 10 April. The Open Interest spiked upward and noted gains of close to $104 million at the time of writing.
Alongside the massive rally in the prices, the surge in OI supported the idea of strong bullish sentiment. On the lower timeframes, SOL traders can expect to face resistance in the $25-$27 region, and at the $30 level.