- Solana boasted of robust bullish momentum and demand.
- The lower timeframes showed that bullish sentiment has weakened in recent hours.
Solana [SOL] witnessed heightened network participation amidst the ongoing meme coin rally. Decentralized exchanges based on the Solana network experienced a boom in activity, AMBCrypto reported.
The price of SOL was also trending higher. Technical analysis highlighted the next bullish target, which also had confluence with a round number resistance level.
The Fibonacci extension levels signal another 30%+ rally
Source: SOL/USDT on TradingView
The move above $32.13 on the 26th of October 2023. It signaled a bullish trend continuation on the daily timeframe.
The rally from $51.23 to $126.36 in the final months of 2023 was used to plot a set of Fibonacci levels (pale yellow).
The 61.8% level at $79.93 was retested as support in January before the rally continued. This signal arrived in early March, when SOL breached the former high at $126.36.
Now, the 61.8% and the 100% extension levels at $172.79 and $201.49 are the next key bullish targets. The RSI was in the overbought territory but does not imply a correction is imminent.
The OBV continued to trend higher, showing steady buying volume.
The bullish sentiment has been muted in the near-term
Source: Coinalyze
AMBCrypto’s analysis of Coinalyze metrics revealed that the Open Interest saw a decline from $2.3 billion to $2.05 billion from the 8th to the 10th of March.
At the same time, prices fell from $151 to $144, before rising to $148 at press time. This indicated a weakened bullish sentiment over the past couple of days.
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The spot CVD also saw a decline over the past 24 hours. However, neither the spot demand nor the OI suggested a drastic price drop inbound.
Investors need not worry about a downtrend so long as SOL is above the $126 level.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
