Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- SOL flipped bullish in higher and lower timeframes.
- CVD spot rose sharply in the past three days.
Solana’s [SOL] bullish momentum from 25 May saw it mount above key multi-week trendline resistance. The “Ethereum [ETH] killer” was up 5% at press time, trading at $20.45, as per CoinMarketCap.
Is your portfolio green? Check out the SOL Profit Calculator
Regardless, Bitcoin [BTC] was still in an overall downtrend on higher and lower timeframes, despite reclaiming the $27k at press time. Unless it breaks above the $27.4k, BTC’s failure to flip bullish could curtail SOL’s bulls.
Can bulls extend more gains?
Source: SOL/USDT on TradingView
All the key marked levels of support and resistance are based on the daily chart. The red/supply zone, $24 – $27, is a bearish order block (OB) formed on 20 February, while the white zone ($19.7 – $21.2) is a bullish OB formed on 10 February.
Finally, the lower support zone (cyan) of $16.7 – $18.8 is a March swing low, and another bullish OB formed on 9 March.
The Fib tool is based on the recent swing high in mid-April and the recent lower low in May. Price action has moved above the trendline resistance on the higher and lower timeframe – SOL flipped to uptrend momentum.
The 23.6% Fib level ($20.40) aligns with the bullish OB (cyan). However, bulls must close above the 38.2% Fib level ($21.47) to increase their chances of rallying to the 50% Fib level of $22.33 or the supply zone above $24. This could occur if BTC’s momentum flips bullish too.
Failure to close above $21.2 could set SOL to hover near $20.40, drop to the trendline resistance (blue line) or retest the March swing lows.
Meanwhile, the RSI (Relative Strength Index) was in the overbought zone, confirming the strong buying pressure as of press time. The OBV (On Balance Volume) also increased, highlighting improved demand.
CVD spot increased
Source: Coinalyze
How much are 1,10,100 SOLs worth today?
The CVD (Cumulative Volume Delta), which measures cumulative volume change in buys and sells over time, was positive on the 1-hour chart from 25 May. This shows bulls have the upper hand in the same period.
If BTC falters, the Solana’s short-term bullish prospects could be undermined.
