One of the most notable altcoins in the past bull season, Solana (SOL), is confusing investors with its current situation. The downward trend of Solana showed that the altcoin broke the psychological level of $20 in the daily timeframe. As bears extend their dominance, the price has changed around an important area of interest for bulls. However, the upward trend may be due to the price movement of Bitcoin coming out of the price level below $26,000.
Solana Price: How Much is it?
A downward look showed that the price range of $18 to $19 is an area of strong buying interest for bulls. The increase in Chaikin Money Flow (CMF) in the daily timeframe indicated that swing traders may be preparing to make a strong offer for Solana.
The presence of a rising order block (OB) further strengthened the likelihood of a price reversal. Although the Relative Strength Index (RSI) remained below the neutral 50, its sideways movement indicated that there is currently equal buying and selling pressure.
Therefore, an increase in demand in the rising OB could indicate that buyers are quickly regaining the psychological level of $20 and targeting the price range of $22 to $22.5. Alternatively, a violation of the rising OB could indicate that sellers are targeting the lowest level of the previous upward rally in the $16 price range.
Solana Coin Future
Data from Coinalyze showed a moderate increase in Open Interest as the price fluctuated around the $19 price level. Open Interest increased by $11 million in the past day. This indicates that millions of dollars have flowed into the futures market with the expectation of a bounce from the $19 price level.
Similarly, it was observed that long positions held a larger portion of open contracts in the exchange. At the time of writing, long positions accounted for a 51.33% share in the daily timeframe. Taken together, this could open the door for a strong upward movement for SOL.
Disclaimer: The information in this article is not investment advice. Investors should be aware that cryptocurrencies carry risks due to their high volatility and should conduct their own research before making any transactions.