SOL Bull Rally Intensifies, Will Bulls Breach Resistance?

Bullish momentum in the Solana (SOL) market has had the upper hand price in the last 24 hours with the price moving between an intra-day high and low of $165.19 and $172.42 respectively. During this rally, SOL’s market capitalization surged by 1.18% to $77,583,357,682  while the 24-hour trading volume dipped by 10.65% to $2,480,485,883.

This surge comes despite the Chicago Mercantile Exchange (CME) denying plans to list a Solana futures fund which has decreased the chances of a Solana ETF.

If the bullish momentum, and as a result, breaches the intraday high of $172.42, the next levels to monitor are around $180 and $190 as traders continue to drive the price higher. However, if there is a big downturn, support levels around $160 and $150 should be monitored to determine the strength of the present upswing.

SOL/USD Technical Analysis

On the SOLUSD 24-hour price chart, the Bollinger bands are converging reflecting a waning bullish momentum and volatility. The upper band, middle band, and lower band touch at $188, $166, and $144 respectively. 

However, with the price action developing red candlesticks near the middle band suggesting a bearish turnover may be looming if the price falls further towards the lower band. 

The Money Flow Index (MFI) rating of 37 and moving south also adds to the bearish sentiment. This trend suggests that money is flowing out as traders take profit from the recent uptrend. Consequently, as the MFI trend goes down further a bearish shift may be anticipated before a reversal to the upside is met.

However, despite the bearish shift, on the SOL 4-hour price chart the stochastic RSI rating of 67 suggests that bulls have the upper hand in the short term. This trend indicates that even if bears seize market control, it may be a pullback of taking profits with other traders waiting to accumulate during the correction. 

Subsequently, if the stochastic RSI reaches the overbought regions (above 70) traders may consider setting stop levels to prevent further losses. 

The linear trend of the Keltner Channel bands in addition suggests that volatility in the SOL market is diminishing pointing to the decreasing buying pressure. However, despite this, the price action is developing higher highs above the middle line pointing to a consolidation. If the price breaks the upper band of the Keltner channel, a bullish trend rally may be anticipated.