- Solana neared its 4-month support territory. Can it trigger a short-term rally?
- SOL’s Binance funding rates turn negative.
- The short/long ratio confirmed a brief bearish superiority within the past day.
Solana’s nearest baseline around the $30 mark triggered some buying momentum within the past three weeks. Meanwhile, the bulls would stay alert to leverage the available opportunity as the alternative token neared this foothold.
Meantime, reversals from the baseline have catalyzed near-term buying momentum. Nevertheless, the 20 Exponential Moving Average and the 50 Exponential Moving Average remained southbound, depicting a surging bearish edge. While publishing this blog, SOL changed hands at $31.3.
SOL Nears Support Range; An Imminent Rally?
Solana’s reversals from $34 dragged the token toward the baseline support at $30. Meanwhile, the developments saw SOL propelling a climbing wedge breakdown on its daily chart. Consequently, Solana swayed beneath the shackles of the 20-Exponential Moving Average and 50EMA to confirm a brief bearish sentiment.
The question lingers, can the alt keep this edge? The support range at $30.3 – $30.8 has offered buyers a re-entry opportunity over the past four months. History repeats would see buyers looking to gain short-term dominance.
A possible break beyond $32.1 might catalyze a near-term bullish run during the upcoming sessions. That would see buyers targeting to propel the price toward $34 before a potential bearish refutation. Meanwhile, the confutation might provide shorting opportunities, with $30.7 as the target.
Nevertheless, a break beneath $30.9 would confirm bullish invalidations. Such developments would see a dip beneath the trend-line support positioning Solana for a retest of its initial massive support zone at $28.
The CMF (Chaikin Money Flow) printed higher troughs as the price action dipped. This reading confirmed a bullish divergence. Meanwhile, buyers would look for possible upswings beyond the zero level for massive bullish action. A sway beneath the equilibrium would back bearish dominance in the overall market.
Funding Rates Declined
The previous day saw SOL’s Binance funding rates deteriorating (going negative) (Santiment data). That showed most investors were bearish within the futures market. Nevertheless, price movements within the previous few days recorded a dip. Also, the short/long ratio confirmed a brief selling dominance over the past 24 hours.