As Solana (SOL) gains traction, traders are eyeing a potential rally following recent bullish signals in the market.
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Solana’s Open Interest surged recently, indicating increased speculative interest among traders.
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Current price action shows signs of a divergence, suggesting the possibility of a market recovery.
Solana [SOL] has experienced heightened investor sentiment, evident from its Open Interest reaching $7.72 billion on May 28. This figure is close to the mid-January peak of $8.57 billion, when Solana was trading at an all-time high of $261.
Source: Coinglass
This upward trend in Open Interest has been prominent since March, aligning with a broader recovery for SOL. Nonetheless, despite climbing from $106 to $182, the altcoin struggled to break through the $180 resistance level, which held firm since early March.
Source: Coinglass
The funding rate had recently turned negative but was positive at the time of reporting. Importantly, the $152 level, which previously acted as a resistance, is now proving supportive as bulls attempt to establish a recovery.
Solana bulls prepare to recover recent losses
Source: SOL/USDT on TradingView
Analyzing the 4-hour chart, the $152 level remained robust. A higher low formed in the Money Flow Index (MFI), juxtaposed with a lower low in price, indicates a bullish divergence. Consequently, this led to a 3.7% increase in SOL’s price within an 8-hour timeframe, with the current session also showing positive movement.
Sustaining momentum will greatly depend on Bitcoin [BTC]’s performance. The On-Balance Volume (OBV) aligns with May’s lows, exhibiting some short-term selling pressure, yet it signals that the selling volume is manageable.
Now trading at its late-April highs, SOL’s OBV has not dipped significantly, coupled with the bullish divergence and Futures data, points to a potential sentiment shift that may drive prices toward the $180 level.
Conclusion
In summary, Solana’s market dynamics reveal promising bullish indicators as the altcoin seeks to recover from previous losses. Investors should remain cautious while observing key levels and sentiment shifts for potential trading opportunities.
