Disclaimer: The information presented is not financial, investment, trading or other advice and is solely the opinion of the author.
- SOL was bullish on the 4-hour chart.
- The financing rate was positive, but development activity was stagnant.
Solana (SUN) He made a strong comeback in recent days. It rallied more than 40% after seeing aggressive bidding at a low of $16 on March 10. It broke the previous high of $21.94 but settled in the $22.94 price range, setting it up for a pullback.
Is your wallet green? Check it out SOL Benefit Calculator
at the time of publication, Bitcoin (BTC) He struggled to hold the $27K area. Any drop below $27K could lead SOL to break key support, while a bounce above $27K could offer little hope of defending key support.
SOL saw an increase in demand at the discount level of $16, placing it in the early phase of the recovery. But the first leg of the rally was met with rejection at $21.94, sending SOL down to $19.06. The second leg of the rally imposed a bearish breakout, pushing SOL past the bearish order block at $21.94.
However, the rally touched the price range of $22.94, attracting bears, which pushed the SOL to $21.27. At press time, SOL is in a lower range of $21.27 – $21.94.
The lower price action could provide further gains for the bears if BTC falls below $27,000. If SOL closes below $21.27, it could tip short-term bears to push SOL towards $20. In the far south, $19, $18, and $17 are the key supports that could stop the decline.
Alternatively, SOL could rally to its upper range of $21.94 – $22.94 and continue higher if BTC breaks above $27K. The other major resistances above the overhead hurdle of $22.94 are $24 and $25.
The Relative Strength Index (RSI) pulled back from the overbought zone and rose slightly above the 50 midpoint. It showed that buying pressure has subsided, but selling pressure remains imminent. OBV (On Balance Volume) fluctuated, indicating volatile demand, which may offer an advantage.
Funding rate and sentiment were positive
Source: Feeling
Based on sentiment, SOL posted positive funding rates, indicating bullish sentiment in the derivatives market. Similarly, the weighted sentiment was positive and slightly up at the time of writing, indicating that investors were bullish on the asset.
Reading Solana (SOL) Price Prediction 2023-24
However, there has been fluctuating development activity in recent days, which may throw investors off guard. Therefore, investors should track this front along with the movement of BTC to make better moves.