Recent price movements of SOL have shown a mixed performance, with gains of 7.64% on a monthly basis and 5.38% weekly. However, there was a 1.49% daily decline following resistance encountered by Solana.
The market sentiment has been volatile, transitioning from bearish to a more optimistic outlook in recent times.
Challenges Presented by Resistance Levels to SOL’s Upward Momentum
Currently, SOL is trading in a consolidation phase, with distinct resistance levels at various points. The trajectory of SOL, both short and long-term, is greatly impacted by these resistance levels which have historically led to price decreases. Breaking above the upper boundary line is crucial for a sustained rally.
In the short term, SOL must surpass the midrange resistance to potentially reach the $188 milestone. Failure could result in a drop to $126 or lower.
Although past instances have shown sell-offs due to this resistance, there are indications from analyses that SOL could make a push towards $188.
Market Sentiment Supporting a Short-Term Rally for SOL
Bullish sentiment is on the rise, as observed from increased bullish activity by CryptoCrypto. This is further evidenced by short liquidations and rising Open Interest.
Significant short positions worth $3.27 million have been closed, contrary to expectations, indicating potential for a new high. Open Interest has also seen a $290 million surge, reflecting rising investor confidence.
The bullish outlook is reinforced by additional indicators highlighted by CryptoCrypto.
Intensified Buying Pressure Anticipated for SOL
The movement of Solana on exchanges, tracked through netflows, has been negative for the last seven days according to Coinglass. This suggests more SOL is being withdrawn than deposited, indicating investor anticipation of a price increase and reduced supply on exchanges.
Continuation of this trend could lead to a bullish short-term outlook for SOL, aiding in overcoming existing resistance levels and potentially driving the price to $188.