Disclaimer: The following analysis does not constitute investment advice.
Solana [SOL] Since November 2021, the trend has been bearish. Any rallies that occurred in the interim were ultimately met by overwhelming selling pressure. The bulls may reverse this trend.
Solana’s bullish bias was evident at the time that Solana wrote, although the long-term charts showed that there has been no significant change. Despite the recent recovery to $29, the $50-$65 area could still resist further advances.
SOL- 1-Day Chart
Source: SOL/USDT at TradingView
SOL seemed to be beckoning bulls towards money and profits on the longer timeframe charts. The resistance of $43 in June was defeated and even retested. To the north, resistance levels at the $50, $60 and $65, respectively, were important.
The $48, $53 or $57 levels are worth keeping an eye on in shorter time frames. But the question is: How much higher can Solana rally.
The future remains uncertain, as always. But, the longer-term bias showed that SOL could rise now that the $43 threshold was broken. Therefore, traders who are long-positioned can lower their invalidation to $43-$42.
It is possible to make a profit from the $55-$60 area, while $65 is more achievable.
Rationale
Source: SOL/USDT at TradingView
Relative Strength Index (RSI), which is above the 50-line neutral on the charts, climbed higher than the 50 line. Awesome oscillator (AO) maintained its position above that line. Both indicators indicated bullish momentum behind Solana, even at higher timeframes.
The Choppiness Index stood at 38.75, which indicates that a strong trend is just around the corner. The On-Balance volume (OBV), was the most encouraging indicator to bulls.
The orange-dotted line indicated resistance that had been in place since October. This resistance was rejected by the OBV in April. Can we expect another rejection and test of resistance in the week ahead, or will the OBV continue to rise above it?
Conclusion
The indicators started to look bullish at higher timeframes but it is important to remember that Bitcoin can be a volatile asset. [BTC] The resistance was intense all the way up to $30k
You should be watching out for the $24.4k-26k and $27.8k areas. While the Solana rally is possible to ride higher, traders need to be ready to switch to bearish when key support levels like $42 fall.