Solana (SOL): Why Bearish Bias is Logical Despite Bullish Momentum
Solana exhibits a bullish strength following its nearly 10% upside from the September 2 lows. SOL traded at around $30.5 during this publication. Meanwhile, the leading crypto, Bitcoin, maintained sideways tendencies at $19.6K – $19.9K. Increased demand backed the SOL price surges. Coinglass analyzed future markets and showed most market players are ready for longs. Can the alt sustain the upside or another drop?
Solana 4Hr Chart
Solana managed to flip its former resistance of $32.64 into support. Remember, the altcoin encountered rejection at the mark within the last few days. Moreover, the indicators printed a bullish bias. The AO (Awesome Oscillator) rose beyond the zero line, climbing further within the past twelve hours. That confirmed surging bullish strength. Also, the trading volume climbed past weekend figures.
The CMF (Chaikin Money Flow) slumped into the neutral region again, following some days beyond +0.05. Well, past +0.05 indicated substantial capital flow into the marketplace. The FIB retracement area revealed some resistance near $34.34 and then $37. That confirmed the upside potential for the alt.
Solana 1Hr Timeframe
The 1hr chart indicators maintained a bullish stance. The RSI (Relative Strength Index) hovered at 64.74. It has wavered well beyond the 50-neutral within the last few days. Such developments confirmed a northbound and steady near-term strength. The OBV (on-balance volume) also noted a brief surge within the last few days. Also, the 21- and 55-period MAs printed a bullish cross.
Nevertheless, the red box presented an FVG (fair value gap). August sessions saw the price crashing through this territory. While publishing this news, SOL price approached the value area. Though the bullish strength, the altcoin might witness bearish reversals at the mark. That would see Solana dipping to $31 and possibly lower.
Final Thought
The $34 mark plus the FIB retracement zone at $34.43 represented a substantial hurdle for SOL bulls. Solana will likely witness a bullish case whenever Bitcoin climbs past $20.2K-$20.8K in the coming few days. That can see the alt flipping the entire $34 belt into a demand region. Until such cases, purchasing Solana for below $34 might be risky.
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