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- Solana threatened to hit a limit shot.
- A break below $26 could provide incentive for sellers.
solarium It made a 21% profit in the last four days. While Bitcoin Consolidating below the $25.2k resistance, Solana shrugged off any hold and jumped higher. Some key levels were identified for SOL, with $26 being one of them.
Reading Solana Price Prediction 2023-24
Indicators and futures markets showed strong bullish sentiment behind Solana. The recent rise from $23.6 to $26 was responsible for this change in sentiment. But can the bulls keep making higher highs?
Range continuation is more likely, but $26 will be important either way
Solana has traded within a range for over a month. Highlighted in orange, the ends of the range are at $20.5 and $26.7, with the midpoint at $23.6.
At the time of writing, SOL was on the brink of breaking out of range high. To the north, there is some resistance in the $27-$28 area.
However, a breakout to the upside would probably cause this area to be broken quickly. The RSI was in the overbought zone to indicate strong bullish momentum. The CMF was at +0.23 to show significant capital inflows into the market.
Can we expect a break up? Available evidence shows that although momentum is strong and demand is present, bulls may stay flat rather than buy Solana.
Based on the risk to reward approach, it was not possible to buy the asset before the upper limit was breached. Bulls can wait for the 4-hour session to close above $27 and retest the $26.5-$27 area to buy. In that scenario, a stop loss can be set below $25.4.
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Until then, rejection at the high range was more likely. A session below $26, followed by a retest of the same resistance level, would indicate that a move towards $23.6 was imminent. Further losses could also be seen whenever Bitcoin faces a selloff.
The rapid rise in open interest showed bullish entrants from $23.
The mid-range mark has acted as a strong support and resistance level for the past month. Therefore, when SOL rose above $23.6 on February 19, open interest shot up along with it. This indicated bullish sentiment and a capital inflow.
On the other hand, Spot CVD is flat since last week. This was a sign that the bulls are not in control of the market, although this in itself does not rule out a Solana breakout. The estimated funding rate was also positive, highlighting the bullish sentiment.