Explosive Solana Bull Run: Will SOL Price Smash Through Resistance?

Explosive Solana Bull Run: Will SOL Price Smash Through Resistance?
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The Solana (SOL) market has experienced significant bullish momentum in the last 24 hours, with the price fluctuating between an intra-day high of $172.42 and a low of $165.19.

This rally has led to a 1.18% increase in SOL’s market capitalization, reaching $77,583,357,682. However, the 24-hour trading volume has dipped by 10.65%, settling at $2,480,485,883.

Explosive Solana Bull Run: Will SOL Price Smash Through Resistance?

Impact of CME’s Decision on Solana Futures Fund

Despite the Chicago Mercantile Exchange (CME) denying plans to list a Solana futures fund, which has diminished the likelihood of a Solana ETF, the bullish momentum remains strong.

If this momentum continues and breaches the intraday high of $172.42, the next levels to monitor are around $180 and $190, as traders drive the price higher.

Conversely, in the event of a significant downturn, support levels around $160 and $150 should be watched to assess the strength of the current upswing.

Technical Indicators Reflecting Market Trends

On the SOL/USD 24-hour price chart, the Bollinger Bands are converging, indicating waning bullish momentum and decreasing volatility.

The upper, middle, and lower bands are positioned at $188, $166, and $144, respectively. The development of red candlesticks near the middle band suggests a potential bearish turnover if the price continues to fall towards the lower band.

The Money Flow Index (MFI) rating of 37, moving south, also contributes to the bearish sentiment. This trend implies that money is flowing out as traders take profit from the recent uptrend. 

Consequently, a further decline in the MFI trend may signal a bearish shift before any potential reversal to the upside.

Short-Term Bullish Indicators on SOL

Despite the bearish indicators, the SOL 4-hour price chart shows a stochastic RSI rating of 67, suggesting that bulls still have the upper hand in the short term.

This trend indicates that even if bears temporarily seize market control, it may merely be a pullback due to profit-taking, with other traders poised to accumulate during the correction.

If the stochastic RSI reaches the overbought regions (above 70), traders might consider setting stop levels to mitigate further losses.

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Volatility and Consolidation Patterns

The linear trend of the Keltner Channel bands further suggests diminishing volatility in the SOL market, pointing to decreasing buying pressure.

However, the price action developing higher highs above the middle line indicates a consolidation phase. Should the price break the upper band of the Keltner channel, a bullish trend rally may be anticipated.

Conclusion

In summary, while the Solana (SOL) market faces mixed signals from various technical indicators, the bullish momentum remains notable. 

Key levels to watch include $172.42 for a potential upward breach, with subsequent targets at $180 and $190.

Conversely, support levels around $160 and $150 will be critical in assessing the strength of any potential downturn.

Traders should remain vigilant, considering both the bullish and bearish indicators to make informed decisions in the dynamic SOL market.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Cryptocurrency investments are highly volatile and carry significant risk. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.

Explosive Solana Bull Run: Will SOL Price Smash Through Resistance?

Techno Tropics

Techno Tropics is a passionate tech enthusiast and the voice behind it, a leading source for daily updates on AI, big data, analytics, and cryptocurrency. Stay tuned for the latest tech news and insightful analysis.
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