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- Solana’s price action stalled at a key interest level for buyers.
- Open interest rose in anticipation of a price recovery.
Solanas [SOL] In a bearish downtrend, the altcoin broke the psychological level of $20 on the daily time frame. As bears expanded their dominance, the price fluctuated around a key area of interest for bulls.
How much are 1,10,100 SOLs worth today?
However, a bullish rebound could depend on Bitcoin [BTC] breaking its ranging price action below the $26,000 price level.
The price action stalled in a zone of bull buying interest
Source: SOL/USDT on Trading View
A look south showed that the $18 to $19 price zone has been an area of strong buying interest for bulls. The rise in the Chaikin Money Flow (CMF) on the daily time frame indicated that swing traders could prepare to bid heavily for Solana.
The presence of the bullish order block (OB) at this level further strengthened the possibility of a price reversal.
Although the Relative Strength Index remained below neutral 50, the sideways move showed that there was identical buying and selling pressure at the moment.
Therefore, a spike in demand at the bullish OB could lead buyers to quickly regain the psychological $20 level and target the $22 to $22.5 price zone.
Alternatively, a break from the bullish OB could see sellers target the higher low of the previous bullish rally in the $16 price area.
The futures market responded with a significant increase in Open Interest
Source: Coinalyse
Realistic or not, here is SOL’s market cap in BTC terms
Dates of Coinalyse recorded a moderate increase in the Open Interest, while the price fluctuated around the $19 price level. The Open Interest increased by $11 million in the past day. This showed that millions of dollars were flowing into the futures market in anticipation of a recovery from the $19 price level.
Similarly, longs owned a higher share of open contracts on the long/short ratio in the exchange. At the time of writing, longs held a 51.33% share on the daily time frame. All things considered, this could result in a solid rebound for SOL.
Source: Mint glass