Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.
Solana [SOL] has bullish momentum behind it after a close to 10% transfer upward from the lows of two September. At press time, SOL stood at $30.5.
In the identical time interval, Bitcoin [BTC] has traded sideways throughout the $19.6k-$19.9k ranges. The surge in Solana costs was accompanied by elevated demand.
Within the futures market, Coinglass data confirmed a majority of market members to be positioned lengthy. Can this transfer upward be sustained, or have the bears woken as much as push SOL decrease as soon as once more?
SOL- 4-Hour Chart
Supply: SOL/USDT on TradingView
In dotted inexperienced, the $32.64 stage of former resistance was flipped to help in current hours. Up to now few days, SOL has confronted rejection at this stage. On the identical time, the indications confirmed a bullish bias.
The Superior Oscillator (AO) climbed above the zero line and rise greater previously 12 hours to indicate bullish momentum on the rise. The buying and selling quantity has additionally been barely greater than what it was over the weekend.
The Chaikin Cash Movement (CMF) dipped again into impartial territory, after a number of days above +0.05.
Effectively, above +0.05 was indicative of serious capital circulation into the market. The Fibonacci retracement ranges (yellow) confirmed some resistance on the $34.34 and $37 ranges. Therefore, there was the potential of a transfer greater.
SOL- 1-Hour Chart
Supply: SOL/USDT on TradingView
On the one-hour timeframe, the indications continued to have a bullish outlook. The Relative Energy Index (RSI) stood at 64.74. It has been nicely above impartial 50 over the previous couple of days.
The inference was that short-term momentum was northward and robust. The On-Steadiness Quantity (OBV) additionally noticed a minor uptick over the previous couple of days. The 21-period and 55-period transferring averages (orange and inexperienced respectively) additionally shaped a bullish crossover.
Nevertheless, the purple field highlighted introduced a good worth hole. In late August, the worth crashed proper by means of this area. On the time of writing, the worth approached this area. Regardless of the momentum, the worth may see a bearish reversal on this area. Such a reversal may ship SOL again to the $31 mark.
Conclusion
The $34 area in addition to the $34.34 Fibonacci retracement stage each introduced a major resistance for Solana bulls. If Bitcoin can climb previous the $20.2k and the $20.8k ranges within the subsequent few days, a bullish state of affairs may develop for SOL.
This might see each the $34 belt flipped to a requirement zone. Till such a state of affairs, shopping for SOL beneath the $34 mark might be a dangerous enterprise.