After rising roughly 10% from its lows on September 2, Solana is displaying bullish strength. On the date of publishing, SOL was trading at about $30.5 per share. Meanwhile, Bitcoin, the market leader, continued to trend sideways between $19.6K and $19.9K. SOL price increases were supported by increased demand. Based on their research, the folks at Coinglass have concluded that the majority of market participants are primed and ready to go long on the futures markets. Is the alt market vulnerable to another downturn, or can it continue its recent uptrend?
Solana 4Hr Chart
The $32.64 price point, which had been a barrier for Solana, has now become support. Keep in mind that the alternative currency has recently been turned down by the mark. Additionally, a bullish bias was shown by the indicators. Over the course of the last twelve hours, the Awesome Oscillator (AO) has climbed above the zero line. And that proved the rising bullish vigor. The volume of trades also increased, surpassing levels seen on weekends.
Some days after going over +0.05, the CMF (Chaikin Money Flow) retreated to its neutral level. If it went above +0.05, that meant a flood of new money was entering the economy. The FIB retracement zone showed resistance at $34.34 and then $37. That proved the alternative had some potential for growth.
Solana 1Hr Timeframe
The hourly chart indicators stayed strong throughout. The Relative Strength Index (RSI) was holding steady at 64.74. Over the past few days, it has fluctuated significantly more than 50 degrees from neutral. These changes proved the strength was heading north and would be rather stable in the near future. Even on-balance-volume (OBV) saw a modest uptick in the last few days. There was also a bullish cross between the 21-period and the 55-period moving averages.
The red box, however, indicated an FVG (fair value gap). The price broke through this level during August trading sessions. While this was being reported, the price of SOL was getting close to its value region. Despite the altcoin’s bullish strength, bearish reversals at the mark cannot be ruled out. If that happens, Solana could fall to $31 or even lower.
Final Thought
SOL bulls faced a strong barrier at the $34 level and the FIB retracement zone at $34.43. When Bitcoin reaches or beyond $20.2K-$20.8K in the next few days, Solana will likely see a bullish case. The entire $34 belt may then become a high-demand area for the alternative. A purchase of Solana for less than $34 could be dangerous until such time.
