Solana (SOL) has made a significant breakthrough, surpassing a crucial resistance level in the past 24 hours. However, the cryptocurrency is still facing stiff resistance and may need to consolidate before making a more substantial move.
Technical Indicators Show Bullish Strength
While the trading volume has not been particularly high, the technical indicators are pointing towards a bullish trend for Solana. The momentum indicator is showing positive momentum, and the choppiness index has begun to decline, suggesting a potential strengthening trend.
Network Metrics Outshine Ethereum
Despite the price fluctuations, Solana’s network metrics continue to outperform Ethereum. This strong user engagement could be a catalyst for significant market cap growth in the coming months.
The $162-$165 zone remains a key resistance level for Solana. There is a significant liquidity pool around this area, and a break above it could lead to a more sustained rally. However, if the price fails to break through this resistance, a bearish reversal may be on the horizon.
The Money Flow Index (MFI) has not been able to climb past 72, even though the price has made new local highs. This could be a warning sign of a potential price reversal.
Futures Market Activity Remains High
The Open Interest in Solana futures has remained near the month’s highs, indicating increased activity in the derivatives market. This is generally a bullish sign for the short-term outlook.
Also Read: Solana (SOL) Surges Past $154 – Can It Break The $162 Resistance Amid Stronger Network Metrics?
Spot Demand Remains Slow
The spot Cumulative Volume Delta (CVD) has been on a slow upward trend, suggesting that the breakout past $162 may take some time. A minor price dip is possible, with potential targets at $155 and $152.
Despite the challenges, the overall outlook for Solana remains positive on the higher timeframes. A sustained drop below $146 would signal short-term bearishness. However, as long as the cryptocurrency can maintain its current momentum, it has the potential for significant gains in the future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
