Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

Solana was approaching the four-month support range. Could it trigger a short-term rally?
The funding rates of the altcoin on Binance are turning negative.
The long/short ratio revealed a slight bearish edge over the past day.

Solanas [SOL] The immediate baseline in the $30 zone has managed to pick up some buying pressure over the past three weeks. As the alt approached this support, the bulls should be looking to capitalize on it in the coming sessions.

Here are AMBCryptos Price prediction for Solana [SOL] for 2023-24

Empirically, reversals from this baseline have rekindled short-term buying pressures. Meanwhile, the 20 EMA (red) and the 50 EMA (cyan) continued to look south to display a larger bearish edge. At the time of writing, SOL was trading at $31.3025.

SOL approaching its support range, can it fuel a rally?

Source: TradingView, SOL/USD

The recent reversals of SOL from the $34 mark have pulled the alt towards the base support of $30. The altcoin’s latest rebound from the $34 ceiling has led to a rising wedge breakdown on the daily chart.

As a result, SOL swung below the constraints of the 20 EMA (red) and 50 EMA (green) to reveal a slight bearish edge. The only question is, can it maintain this edge?

Over the past four months, the $30.3-$30.8 support range has provided buyers with an opportunity to re-enter the market. Should history repeat itself, buyers could gain control in the short term.

A possible breach above the $32.1 level could trigger a short term bull run in the coming sessions. The buyers would try to push prices towards the $34 zone before likely to face a bearish rebuttal. This rebuttal may also present opportunities for short positions targeting the $30.7 level.

Nevertheless, a breach below the $30.8 level would confirm a bullish invalidation. In such a case, a drop below the trendline support (white, dashed) could position SOL before retesting its first major support level in the $28 zone.

The Chaikin Money Flow (CMF) marked higher dips as price action slowed. This reading revealed a bullish divergence. The buyers need to look for a possible jump above zero to look for a strong bull move. A swing below equilibrium would continue to flash a broader bearish edge.

Financing rates fell

Source: Santiment

According to data from Santiment, funding rates turned negative for Binance in the past day. Simply put, the statistic hinted that most traders were somewhat bearish in the Futures market.

However, price action over the past few days has also witnessed a corresponding dip. In addition, an analysis of the long/short ratio revealed a slight selling advantage over the past 24 hours.

Source: Coinglass

Finally, SOL’s rising wedge distribution towards the four-month support ceiling presented several opportunities. The triggers and goals would remain the same as discussed above. Finally, investors/traders should keep a close eye on Bitcoin’s [BTC] movement to determine its effects on broader sentiment.

This post Solana: How Buyers Can Harness SOL’s Volatility to Stay Profitable

was published first on https://ambcrypto.com/solana-how-buyers-can-leverage-sols-volatility-to-remain-profitable/


Write A Comment