Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Solana bulls have performed extremely well after breaking past the crucial $25-$27 resistance zone in October.
The strength of the buyers even when SOL traded at $50 meant the rally could extend toward $80 later this year.
Solana [SOL] has rallied 146% in just under a month to reach $51.93, and the move has not lost strength yet. Technical analysis by AMBCrypto dated 2nd November highlighted the $44 and $51.5 levels of interest on the higher timeframes.
Such a rally has materialized as anticipated. Now it appeared that the $50 psychological resistance level could be broken by the bullish impetus. Here’s how traders can navigate the markets over the next week.
The 100% Fibonacci extension level was tested but the rally wasn’t over yet
Source: SOL/USDT on TradingView
The three-day price chart showed SOL registered a series of green candles over the past month from the $20.93 support level. The $39.18, $48.38, and $75.35 levels represented highs on the weekly chart. Consequently, they are important resistance levels.
The SOL bulls have already breached two of them with relative ease. The move above the $25.43 mark was instrumental as it highlighted a break in market structure. The sellers were unable to force a retracement over the past four weeks, although the retest of the $39.18 level as support was noteworthy.
The RSI was at 90 and the market structure showed SOL has gone vertical since the structure break at $25.4. The On-Balance Volume (OBV) shot higher to denote increased buying volume, and the Chaikin Money Flow (CMF) also signaled a large capital influx to the market.
The 100% Fibonacci extension level was tested in recent hours. Therefore, it could be a good idea for bulls to book profits on their positions. However, a large retracement might not occur. The $44 and $39 regions were likely to be hefty support zones where SOL could resume its rally from, in the event of a pullback.