Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation
Bitcoin has been in a consolidation section up to now month two months, as the value confronted stiff resistance within the $45k space. On the identical time, Bitcoin has registered larger lows on the each day chart. Solana is an asset whose worth motion might be affected by the route of Bitcoin within the weeks to come back. The market construction for Solana has been bearish since early November, with a quick rally in early February.
SOL- 1D
Supply: SOL/USDT on TradingView
The market construction was bearish due to the sequence of decrease highs the value has set on the charts in current months. On the identical time, the value has additionally set decrease lows, and for this, the shut of the each day candle was thought of.
It is because, in a downtrend, the value can bounce and attain towards the upside in the hunt for liquidity, however shortly discover itself pressured decrease. Therefore, candlewicks are thought of. The $67-$81 space (cyan field) had acted as an excellent demand zone in August, in addition to in current months. However the bulls might get exhausted if the value retains testing the identical space repeatedly.
To the upside, the $106 stage and the $115 space might supply important resistance to the value.
Rationale
Supply: SOL/USDT on TradingView
The RSI hauled itself above impartial 50 and retested it as help up to now couple of weeks, one thing it has not been capable of do since mid-December. Even in December, the value was fast to slump- therefore, if the RSI might keep above 50 for a couple of extra days, bulls might take it as a constructive signal.
The MACD labored beneath the zero line, though it did kind a bullish crossover and snake larger.
The OBV confirmed that purchasing quantity was unable to interrupt previous the February highs, so a transfer previous the orange stage might signify that purchasing quantity was lastly starting to occupy the motive force’s seat. Alternatively, the CMF confirmed that capital move was headed out of the market, and bears had been nonetheless robust.
Conclusion
The indications had been considerably conflicting, however on the value chart, the market construction remained bearish. A transfer previous $106 and a better low registered following that may be the primary signal of a change in longer-term bias for SOL. On the identical time, a push towards $100-$115 might nonetheless become a liquidity seize. Therefore, risk-averse market individuals would need to see Solana flip the $105 and $120 areas from provide to demand.
