Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Solana passed the previous high of $27.12 in February to reach $32. The adventure above $30 lasted no more than a few minutes but eased the bullish intent.
It was bull season again for Solana [SOL] when the token climbed above $18 in late June. Since then, it has broken through two strong supply zones on the overnight price chart. From a technical point of view, it presented a new buying opportunity for positional traders.
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On-chain metrics also saw good performance. There was a slight upward trend in the number of active users and a major spike in smart contract deployment on the platform was also noted.
The daily chart showed a rally above USD 30 in the coming weeks
While SOL seemed to be losing some bullish steam in the lower time frames, the 1-day chart showed huge bullish potential. This comes on top of the bulls’ strong performance in July. As things stand, SOL is up 45% this month with more likely to follow.
The 1-day bearish order block at $24 was highlighted in cyan. It was formed in mid-April, but the recent price increase beat this supply zone. At the time of writing, it has been retested as support.
The most recent rally has its base in the bullish breaker block at $18.3. The Fibonacci retracement levels showed that the $25.23, $23.6 and $21.28 levels will act as support in case SOL returns further south. The RSI showed robust bullish momentum and the uptrend in the OBV signaled significant demand fueling the rally.
The Open Interest chart should excite buyers in the longer term
Realistic or not, here is the market cap of SOL in terms of BTC
Solana was solidly bullish in July. Speculators’ sentiment on the market has also grown optimistically since the end of June. Coinglass’s chart showed a steady rise in OI, which was a good indicator of sentiment.
Therefore, SOL presented a good buying opportunity, targeting $32 and $35.4 as take profit levels based on the Fib levels. This idea will be voided if it falls below the 78.6% retracement level at $21.28.
This post Solana bulls are euphoric after price hits 2023 highs
was published first on https://ambcrypto.com/solana-bulls-euphoric-after-price-touches-2023-highs/