Connect with us
Active Currencies 14909
Market Cap $2,553,504,286,393.10
Bitcoin Share 51.51%
24h Market Cap Change $1.53

Solana: Will a retest of $20 yield better results for bulls

2min Read

Solana’s quick recovery from a price dip on 30 June signaled buyers’ intent to flip its structure from bearish to bullish.

Solana: Will a retest of $20 yield better results for bulls

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Bulls recovered from the latest dip to maintain SOL’s uptrend.
  • A stable funding rate could fuel more gains.

Solana [SOL] posted four bullish candles in a row on the 12-hour timeframe, as bulls recovered from the 14.8% drop on 30 June that halted their bullish momentum. This saw SOL trade at $19.26, as of press time, as buyers prepared for another test of the $20 psychological level.

Is your portfolio green? Check the Solana Profit Calculator

Due to a surge in its NFT metrics in recent weeks, Solana recorded increased activity on its blockchain which could lead to more growth and translate to a price increase for the altcoin.

Bulls won’t be deterred

Solana price chart with green and red bars on a dark background

Source: SOL/USDT on Trading View

June saw Solana reverse some of its recent losses. After dropping to the $12.81 support level, price rallied to flip the $16.66 resistance back to support. However, the selling pressure at the $20 resistance level saw price rejected on 30 June, as bulls moved to claim another resistance level. This price rejection was accelerated by the market correction, due to the rejected Bitcoin ETF applications by traditional asset firms.

Despite the setback, bulls remained firm in their resolve. A 12.9% price jump between 30 June and 2 July maintained SOL’s uptrend, bringing it to the brink of a critical resistance level.

Looking at the on-chart indicators over the 12-hour timeframe, the Relative Strength Indicator highlighted the rising demand for SOL, posting a reading of 65. The Chaikin Money Flow continued to rise and stood at +0.28, as of press time. This showed significant capital inflows for Solana.

If buyers successfully break the $20 level, bulls will look to flip SOL’s structure to bullish. A break of the lower high around the $22 price zone could lead to a significant push on for the $23.45 resistance. Alternatively, sellers could leverage the bearish structure to push prices down again toward the $16.66 support.

Steady funding rate could support bulls

Source: Coinglass

Data from Coinglass showed that the OI-weighted Funding Rate was constantly positive since 26 June. This hinted at increased demand in the derivatives market which could boost SOL’s bullish charge.

How much are 1,10,100 SOLs worth today?

Similarly, the exchange long/short ratio on the four-hour timeframe revealed strong bullish sentiment with longs holding a 51.5% advantage, as of the time of writing. Together, Solana buyers can be confident of taking the $20 resistance level.

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.