- Solana [SOL] currently displays a bearish trend in its daily chart, though the long-term outlook remains favorable.
- Despite recent downturns, Solana managed to outperform most top altcoins over the past week.
- Key technical indicators and Fibonacci levels suggest potential for a renewed uptrend.
Stay informed about Solana’s market trends and technical analysis. Discover how recent developments and upcoming events could shape its future trajectory.
Bullish Sentiment Amidst Bearish Trends
The Solana market has demonstrated a bearish bias recently, with a 2.56% fall over the last seven days. This puts SOL among the better performers in the top-10 cryptocurrency rankings despite its downward movement. Expectations of a SOL Exchange-Traded Fund (ETF) and its potential post-U.S elections are fueling bullish sentiments.
Solana’s relative strength in the altcoin market is notable, especially as other cryptocurrencies have suffered more significant losses. As highlighted in recent reports, Solana continues to process significantly more daily transactions than Ethereum, reinforcing its operational robustness.
Technical Analysis: Fibonacci Levels Hold Steady
Utilizing Fibonacci retracement levels from the $98.48 to $210.18 rally observed earlier this year, notable thresholds appear resilient. The 78.6% retracement level has been tested multiple times since mid-April and consistently held, indicating strong support.
Indicators such as the On-Balance Volume (OBV) trending downwards and the Relative Strength Index (RSI) remaining below neutral 50 since June highlight ongoing selling pressures. The Directional Movement Index (DMI) underscores this trend, showing both the Average Directional Index (ADX) and negative Directional Indicator (-DI) above the 20-mark, signifying a strong downward trajectory.
Market Sentiment and Speculation
Despite the negative short-term outlook, some signs suggest a potential price recovery. The spot Cumulative Volume Delta (CVD) attempted a recovery in June, although recent sell-offs have reversed this progress. Interestingly, Open Interest in futures contracts also shows signs of a lukewarm bounce, suggesting cautious optimism among speculators.
Liquidation Data Insights
Recent data indicates significant short liquidations, particularly a $6.34 million liquidation at the $137 mark. This spike points to a successful short squeeze in lower timeframes, raising the next resistance zone to around $140-$143.
Looking at liquidity clusters, the latest visit to the $152 range reversed a bullish trend, showcasing how prices often seek out liquidity pockets before resuming their original path. The next noteworthy liquidity clusters are identified at $164 and $175.
Conclusion
In summary, while the short-term price action for Solana appears bearish, with a likely consolidation around $135, several factors suggest a potential for upward movement. The resilience of key Fibonacci levels, cautious optimism from speculators, and substantial liquidity clusters could all play a role in a future price rally. Investors should watch for a Bitcoin move above $60k, which could bolster confidence and drive SOL towards $164 and $175 in the coming weeks.
