Solana’s (SOL) Quick Gains, but How Far is Breakout?
- Strong resistance at $35
- The bullish strength of the last few hours could reverse in the coming day.
Bitcoin retained its near-term support at $19.2K and surged past the $20,000 mark. The change in BTC’s lower chart sentiment has most alternative tokens posting minor rallies. Solana witnesses a quick bounce from its lower range – printed within the previous week.
While publishing this post, SOL seemed ready for a trip towards $35. However, can market players bet on potential breakouts for the alt as Bitcoin stays under the resistance of $20.8K? or should they plan to trade inside the range?
Range Lows Witness Demand Again
The last ten days had Solana trading inside the $32 – $34.8 range. That had the $33.38 mid-range value serving as resistance and support on various scenarios within the previous week. Bitcoin’s climb from the $19K lows over the past trading days saw Solana regaining a bullish sentiment.
Nevertheless, enthusiasts should beware that higher trends remain bearish for the token. Thus, a move towards $35 would likely reveal a selling opportunity – not breakouts. The Relative Strength Index climbed beyond 60 within the last few hours.
Also, the DMI (Directional Movement Index) displayed an underway bullish trend. Yet, the trading volume wasn’t exceptional within the past few days. Thus, investors might check range extremities to trade $SOL.
Dev Activity, Social Volume Dip Over Last Week
The development activity has declined since mid-September. Nevertheless, this hardly correlated with SOL’s price. Dev activity and price noted a swift surge one week before this decline. Meanwhile, Social volume printed a solid picture of user excitement on the token.
Solana’s social volume deteriorated over the previous week, and the SOL price declined to $32 from $34. However, users can be confident that Solana developers haven’t forgotten about the project. Solana’s long-term trend isn’t massively bullish.
Moreover, $35 represented an FVG (Fair Value Gap) that served as resistance for SOL since mid-September. While writing these lines, purchasing Solana remained a bad risk-reward trade. Thus, risk-averse market players might execute short positions near $34.8 and target lows of $32.
Editorial credit: Rcc_Btn / shutterstock.com
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