• Solana is trading at a critical resistance zone and could face rejection.
• Monday’s highs and lows provide information on the direction of the coming week for traders.
• Spot CVD is flat and funding rate remains negative, indicating bearish sentiment flipping bullish.
Solana Tests Critical Resistance Zone
Solana has retested a critical resistance zone in the past two days after reversing its bearish trajectory since late February. This was seen across the crypto market due to short-term bullish sentiment behind Bitcoin in the early hours of Monday. The range extended from $20.5 to $26.6, with Solana currently trading at $19.68 and measuring 28.6% gains from its swing low at $16 over the weekend.
Technical indicators show that Solana has strong bullish momentum, as indicated by its RSI being above neutral 50, however buying pressure appears muted as OBV fails to form a higher high despite high trading volume over the past few H4 sessions of gains. The market structure appears bullish as lower high at $18.9 had been beaten, but bears could be interested in shorting the asset if it faces rejection near range lows and bearish breaker from February around $20 area. Profit booking can be done at support levels of $18.5 and $16.6 respectively
Open Interest Indicators
Open Interest indicators show that spot CVD has been flat with no upward push following recent move while funding rate remains negative which shows that short positions are paying long positions – an indication of bearish sentiment flipping bullish recently
Traders can incorporate Monday’s highs and lows before formulating a plan of action regarding Solana given that it is testing a critical resistance zone which could lead to rejection or possibly result in an uptrend depending on where price action takes it next in terms of open interest indicators such as spot CVD and funding rate respectively
Overall this article highlighted how Solana appeared to reverse its bearish trajectory from late February following short-term bullish sentiment behind Bitcoin on Monday morning, but caution is needed when making trading decisions since technical analysis showed muted buying pressure while open interest indicators were still pointing towards bearish sentiment flipping bullish recently – all factors which should be taken into account before placing trades according to individual risk appetite