Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- SOL’s structure was neutral at the time of going to press.
- Weekly price volatility eased, but funding rates improved.
At the time of writing (April 26), altcoins, inclusive Solana [SOL]were all green afterwards Bitcoin [BTC] has reclaimed the $28k price range. Notably, SOL was up 5% over the past 24 hours, but had yet to recoup last week’s losses.
Is your wallet green? Check SOL Profit Calculator
Source: Coin360
Notably, SOL lost about 6.5% in the past seven days after BTC fell to the $27k price zone and could experience significant volatility, especially early next week (May 2-3) due to the FOMC meeting.
Buyers’ and Sellers’ Indecisiveness – Which Way for SOL?
Source: SOL/USDT on TradingView
Since April 22, SOL’s price action has fluctuated between the dynamic 50-EMA and 200-MA – suggesting indecisiveness among buyers and sellers. In particular, the 50-EMA (orange line) moved horizontally, highlighting recent consolidation.
If the 50-EMA remains flat, extensive price consolidation may be likely for a while. The RSI and OBV were also flat, reinforcing the consolidation opportunity. But the falling 200-MA indicates that sellers still had the upper hand, at the time of writing.
As such, SOL could fluctuate between $19.97 and $23.81 in the coming days/weeks. Such a scenario could offer potential benefits by targeting the upper and lower levels of the range. An increase above $23.81 could lead SOL to retest the supply level at $26, especially if BTC reclaims the $29,000 mark.
However, a daily close below the 200-MA and the $19.97 support indicate increasing weakness in the market. A break of these two levels could easily sink the SOL/USDT pair to the March low of $16.
Weekly price volatility decreased; funding rates fluctuated
Source: Sentiment
Is your wallet green? Account SOL Profit Calculator
A look at chain statistics revealed that funding rates have fluctuated since April 19. At the time of writing, funding rates were positive after flashing red for much of April 25.
The fluctuating rates indicate sluggish demand and could push SOL into extensive consolidation.
Despite the weekly decrease in price volatility, sentiment remained eerily negative, echoing investor reservations about the asset.
