Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
Solana [SOL] has carried out properly since final Friday. The bulls had been in a position to defend the $19.2 help degree.
Furthermore, they managed to push costs previous a powerful short-term resistance over the weekend. It was doubtless that additional good points would comply with after the worth motion that developed previously week.
The newest Solana community replace introduced some extremely anticipated features. Shortly after the announcement, costs noticed a pullback.
May this minor pump be only a sell-off after the information? Or was it the start of a bigger rally?
Solana bursts previous the $20 psychological degree on excessive quantity
Supply: SOL/USDT on TradingView
The bullish order block from 12 Might on the 4-hour chart was flipped to a bearish breaker and retested as resistance on 24 Might. Every week in the past, the momentum was bearish and SOL was compelled to retreat to the $19.2 help.
From there, the bulls had been in a position to mount a comeback. Since Monday Solana was in a position to register speedy good points and swiftly break previous the bearish breaker block. It did so by leaving an imbalance on the charts, which signaled the power of the bullish transfer.
On the time of writing, the H4 market construction was strongly bullish, regardless of the rejection at $21.3. The rejection got here after a bearish divergence between the worth and the RSI.
The $20.35-$20.45 short-term help zone may very well be examined earlier than one other transfer upwards.
The RSI remained above impartial 50, suggesting momentum of Solana has not but flipped bearish. The DMI additionally confirmed a powerful uptrend in progress with each the +DI (inexperienced) and ADX (yellow) above the 20 worth.
The decline in spot CVD raised issues in regards to the bullish conviction
Supply: Coinalyze
From 29 Might, the spot Cumulative Quantity Delta on the 1-hour chart was in decline. Coinalyze knowledge additionally confirmed a steep drop in Open Curiosity upon the rejection from the $21.3 resistance.
How a lot are 1, 10, or 100 SOL price right now?
Taken collectively they present sturdy short-term bearish sentiment. The drop in OI represented discouraged lengthy positions. This might change if the CVD begins to tick greater. But, the falling CVD with rising costs instructed the rally may not be spurred organically.
The value motion indicated that purchasing SOL on the $20.5 space may characterize an excellent risk-to-reward commerce focusing on the following highs at $22.4.
