Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
- Quick-term market construction and momentum have been strongly bullish at press time.
- The spot CVD has declined, which meant that sellers have the higher hand.
Solana [SOL] sellers have been dominant since mid-December. They compelled a drop of near 42% in two weeks, dropping from $15 to $8.8. In the meantime, Bitcoin [BTC] meandered across the $16.6k degree, unable to make up its thoughts.
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Quick Solana positions have been squeezed with a vengeance in latest days, and extra bears may very well be trapped within the coming days. Though SOL lacked important demand, it was dangerous to brief the asset.
The lows of the previous vary have been retested- and one other surge upward can’t be discounted
From 22 November to 27 December, Solana traded between $11.3 to $15. It additionally had a degree of help at $9.93. In late December, intense promoting stress noticed SOL drop to $8. Nonetheless, this dive was adopted by a big brief squeeze.
After the $9.93 degree was flipped to help, SOL noticed yet one more upward spike, which carried the costs to the previous vary lows in latest hours of buying and selling. The Relative Energy Index (RSI) confirmed sturdy bullish momentum over the previous few days. The transfer above the $10.78 – $11.12 area indicated that Solana may climb even increased.
The On-Steadiness Quantity (OBV) made positive aspects prior to now three days, but it surely confronted resistance close by, much like how the value confronted resistance on the $11.3 mark. A transfer upward for each the OBV and the value may see one other push increased towards the mid-range mark at $13.15.
Regardless of the rise in OI, CVD stays unconvincing
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The spot CVD didn’t encourage bullish confidence. The negatively sloping CVD meant that sellers have been dominant all through December. This shifted to a extra impartial stance in latest days, however the CVD continued to see a downward slope. The liquidation chart highlighted that a lot of brief positions had been liquidated already.
The market construction was bullish on decrease timeframes, and the Open Curiosity was additionally growing. With the CVD exhibiting a scarcity of demand, the inference was {that a} sturdy increased timeframe uptrend was unlikely to be established. Nonetheless, that doesn’t rule out one other transfer upward to $13, and even increased, to liquidate extra brief positions.