The $100 roadblock – Why Solana’s ETF inflows couldn’t shatter the range highs
In the short-term, SOL was at a precarious spot after facing rejection from the highs.
A recent AMBCrypto report found that Solana [SOL] had rallied 10x what Bitcoin [BTC] had rallied at one point in May. The reason behind this outperformance was a combination of growing institutional support for SOL and strong spot ETF inflows.
As a result, the SOL/BTC hike measured 9%, indicating a greater risk appetite among Solana buyers.
And yet, despite the good performance, the altcoin has faced losses over the past three days. Tokenized stock activity and ETF inflows were not enough to drive the prices higher.
SOL faced rejection from just below the psychological $100-resistance on Monday, 11 May. Hence, the question – Is this a temporary roadblock, or have the bulls pushed SOL as far as it would go?
The range formation and cautious Solana outlook
In March, Solana broke the $94 local high but stopped short of the $100-mark, falling all the way to the range lows once more. The revised range high at $97.68 was tested once again, but a bearish outcome came in recent days.
During this range formation, the OBV on the 1-day chart trended higher. This indicated accumulation within the range, making a bearish breakdown much less likely.
The RSI also pointed towards bullish momentum after the gains of the past two weeks, but traders need to remain cautious. Until the $97-$100 supply zone is broken and flipped to support, a swing buying opportunity would be more feasible closer to the $77 lows.
The liquidation map noted a cluster of short liquidations from $92-$97, but the cumulative long liquidation to the south was larger. This meant that a price drop toward $85 or even lower was more likely than a rally to $97.2 and higher.
Traders’ call to action – Patience
The $87.6 price level has been a short-term sanctuary for the bulls. It is possible that buyers can rescue SOL from sinking lower, provided this support is defended.
Traders can await a breakout past the range highs to look to go long, or a breakdown below this local lower timeframe support to go short.
Final Summary
- Solana exhibited relative strength against Bitcoin to get May off to a good start.
- Rejection at the $97 swing high dulled the upward momentum and constrained the altcoin within a range.
