• Solana [SOL] recovered strongly in the past few days, appreciating over 40% after seeing aggressive demand at the lows of $16.
• A surge beyond $27K could give bulls slight hopes of defending the crucial support while any drop below this level could push SOL to breach key support.
• Funding rate and sentiment were positive while development activity stagnated.
Solana Price Analysis
Bullish Recovery After Seeing Aggressive Demand
Solana [SOL] recovered strongly in the past few days, appreciating over 40% after seeing aggressive demand at the lows of $16 on March 10. It broke above its previous high of $21.94 but hit a price ceiling of $22.94, setting it for a retracement.
Price Action and Momentum Indicators
At press time, Bitcoin [BTC] struggled to maintain the $27K zone. Any drop below this level could push SOL to breach key support, while a surge beyond this mark could give bulls slight hopes of defending the crucial support.
Source: SOL/USDT on TradingView
SOL saw increased demand at discounted levels of $16, setting it for the first leg of recovery which however faced rejection at $21.94 sinking SOL to $19.06. The second leg brought about a bearish breaker pushing SOL beyond the bearish order block at $21.94 but hitting a price ceiling at $22.94 attracting bears who sank it to $21.27 where it oscillates currently between that and its upper range ($21-22).
Funding Rate & Sentiment Positive
According to Santiment, SOL registered positive funding rates showing bullish sentiment in derivatives market while weighted sentiment was also positive indicating investors were bullish on asset though development activity has fluctuated slightly in the past few days which might unnerve investors if BTC drops below 27K or increase if BTC increases beyond that mark respectively taking SOL down or up depending on momentum shift respectively with key supports lying southwardly around 19$, 18$ and 17$.
RSI & OBV Analysis
The Relative Strength Index (RSI) retreated from overbought territory and fluctuates slightly above midpoint 50 indicating buying pressure has eased but selling pressure still imminent while On Balance Volume (OBV) fluctuates showing unstable demand which gives bears more leverage should BTC break below 27k tipping short term bears to pull SOL down to 20 closing below 21$ else increasing upwards if BTC increases duelling 24$ and 25$ as overhead resistance points respectively with current oscillation between 21-22 suggesting indecision amongst traders amid volatile market conditions currently prevailing in crypto space overall with bullishness still prevailing albeit diminishing gradually as investor’s confidence dwindles amidst uncertain times yet again due unpredictability among institutional players including retail investors alike as they remain wary regarding their investments decisions as market volatility continues amidst ongoing pandemic situation currently prevailing globally right now.:
Solana [SOL] is trading within an indecisive zone where any move either way would depend largely upon Bitcoin’s [BTC] movements whether it breaks or sustains above or below 27K respectively further influencing other altcoins including Solana significantly due unpredictable nature of current markets fueled by uncertainty amongst institutional and retail investors alike making them cautious regarding their investment decisions pertaining cryptocurrencies involved mainly owing to volatile nature associated with digital assets presently especially during these unprecedented times caused by ongoing pandemic situation globally right now eventually .