Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- SOL turned bullish in higher and lower time frames.
- CVD spot has risen sharply over the past three days.
from Solana [SOL] bullish momentum from May 25th saw it rise above the key multi-week trendline resistance. The “Ethereum [ETH] killer” was up 5% at time of writing and was trading at USD 20.45, according to CoinMarketCap.
Is your wallet green? look at the SOL Profit Calculator
Careless, Bitcoin [BTC] was still in a general downtrend on higher and lower timeframes despite recovering the $27k at the time of writing. Unless it breaks above $27.4k, BTC’s failure to turn bullish could curtail SOL’s bulls.
Can bulls make more profit?
Source: SOL/USDT on TradingView
All major marked levels of support and resistance are based on the daily chart. The red/stock zone, $24 – $27, is a bearish order block (OB) formed on February 20, while the white zone ($19.7 – $21.2) is a bullish OB formed on February 10.
Finally, the lower support zone (cyan) of $16.7-$18.8 is a swing low in March, and another bullish OB formed on March 9.
The Fib tool is based on the recent swing high in mid-April and the recent low low in May. Price action has moved above the trendline resistance on the higher and lower time frame – SOL has turned to upside momentum.
The 23.6% Fib level ($20.40) corresponds to the bullish OB (Cyan). However, bulls need to close above the 38.2% Fib level ($21.47) to increase their chances of rallying to the 50% Fib level at $22.33 or the supply zone above $24. This could happen if BTC’s momentum turns bullish as well.
Failure to close above $21.2 could cause SOL to hover near $20.40, drop to trendline resistance (blue line), or retest March swing lows.
Meanwhile, the RSI (Relative Strength Index) was in the overbought zone, confirming strong buying pressure at the time of writing. The OBV (On Balance Volume) also increased, indicating improved demand.
CVD spot increased
Source: Coinalyse
How many Worth 1,10,100 SOLs today?
The CVD (Cumulative Volume Delta), which measures the cumulative volume change in buying and selling over time, was positive on the 1-hour chart as of May 25. This shows that bulls predominate in the same period.
If BTC falters, the Solana’s near-term bullish outlook could be undermined.
