While the 1-day chart of Solana displayed a predominantly bearish trend, the shorter timeframes indicated a notable presence of bullish momentum.
On the price charts, Solana exhibited contrasting biases between the 1-day and 4-hour timeframes, with the advantage leaning towards the bulls in the shorter timeframes. This favorable situation could potentially drive SOL’s rally towards the price range of $19 to $20. However, it is important to note that the available evidence does not currently provide substantial support for predicting further gains.
Solana (SOL) experienced a short-term uptrend as the bulls successfully pushed past the $16 resistance level. However, the higher timeframes did not exhibit strong bullish signals. This indicates that the bullish momentum of SOL may encounter a potential stall around the $20 resistance level.
Over the past ten days, Tether’s (USDT) dominance has significantly declined, coinciding with a rally in the broader cryptocurrency market. Bitcoin (BTC), in particular, has witnessed substantial gains, as indicated by the increasing trend in Bitcoin dominance.
Buyers maintained their advantage as evidenced by the H4 candle wick reaching $16.1.
Source: SOL/USDT on TradingView
Since June 15, Solana has consistently formed higher lows on the 4-hour chart, indicating an upward trend. Moreover, on June 21, it surpassed a previous lower high, effectively breaking the bearish market structure. This breakthrough, accompanied by a subsequent formation of a higher high and higher low, has confirmed the initiation of an uptrend on the 4-hour chart.
While the daily chart of Solana indicated a strong bearish sentiment, there are important levels for the bulls to overcome on the 1-day chart, namely $18.66 and $22.3. On the other hand, the H4 chart displayed a notable resistance zone between $18.66 and $19.3. This area, highlighted in red, also revealed a bearish order block.
Considering the market structure and momentum observed in the past week, it is probable that a move towards the aforementioned resistance zone could occur. This assumption is supported by the rising On-Balance Volume (OBV), which has surpassed a local resistance level. As a result, the increased buying pressure may drive prices upwards. However, it remains uncertain whether the Solana bulls will encounter a reversal around the $20 region or not.
Source:Â Coinalyze
On June 22, as the price of Solana dropped from $17.4 to $16.8, the Open Interest decreased by approximately $19 million. This decline indicated a discouraged sentiment among the bulls and an overall bearish outlook.
Following the decline, both the Open Interest (OI) and prices have shown signs of recovery, restoring a bullish sentiment in the short term. However, it is important to note that the upward movement might not take place over the weekend, and it could potentially extend until the trading session on Monday before resuming.
During the dip, the funding rate had been negative, indicating a bearish sentiment. However, it has since climbed back into positive territory, suggesting a return to a bullish sentiment.
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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