Can Solana bulls trigger an uptrend?
- WBOYOriginal
- 2024-06-24 08:03:48713browse
After a promising Q1 performance this year, Solana [SOL] saw a rather sluggish trajectory over the past few months.
Solana (SOL) price movements over the past month have shown a clear downtrend from the $186 resistance. At press time, the coin was seen testing the $133 support level once again. Now, considering that SOL faced a strong bullish reversal from the $126-$133 support range earlier this year, another reversal from this zone seemed likely.
In the meantime, however, SOL’s recent downtrend formed a classic falling wedge pattern on the daily chart. While the bulls tried to break the streak of red candles, they should now hold the $126-$133 support range to prevent a major downward price breakout.
If the bulls can defend this support range, SOL could gather firepower to retest the $174 resistance in the coming days.
Solana price showed a breakout after a similar falling wedge breakout that occurred last month and clocked in a 30% gain to test the $186 resistance. Any close above the $141 resistance can confirm the chances of a breakout rally.
The stochastic RSI showed a highly oversold position and confirmed a bearish edge at the time of writing. However, it also confirmed the chances of a likely reversal as it saw a bullish crossover at press time.
The Crypto Fear And Greed Index was still in the ‘greed’ zone, indicating that an uptrend could still be on the cards.
However, buyers must keep an eye on trading volumes as the coin aims to break out of its current pattern. The altcoin’s inability to back up green candles with enough volumes can cause a rather short-lived breakout.
Open Interest remains stable despite price drop
Solana’s Open Interest (OI) levels on Binance [BNB] remained stable during a steep price decline. This indicated that despite falling prices, there still is high interest in maintaining positions as traders are possibly anticipating a turnaround.
Please note that OI levels remaining stable in isolation is not a bullish signal. But it can confirm the potential for a reversal when complemented with technical indicators and overall sentiment analysis.
News source：https://www.kdj.com/cryptocurrencies-news/articles/solana-bulls-trigger-uptrend.html
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