- 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 read: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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