• The token Solana [SOL] has been constricted in a range formation since 10 June.
• Buying volumes have declined at the range high of $16.11, so bulls need to clear this hurdle for SOL to move higher.
• If BTC fails to break above $27k, then SOL could retrace back to the mid-range or range low level.
Solana Analysis: Seeking Buying Opportunities?
The cryptocurrency Solana [SOL] is currently trading within a range formation which began on 10 June and is currently seeking buying opportunities as it has reached its current range-high of $16.11. To continue moving higher, bulls must be able to break through this resistance level. However, if Bitcoin [BTC] fails to break above the key price level of $27k, SOL may retrace back down towards the mid-range or lower levels of support.
Initial Boost from Bitcoin’s Uptrend
The corrective bounce from the $14.4 range low which occurred on 16 June received a double boost from both Bitcoin’s upswing and Solana’s impressive NFT performance due to increased demand in the market for digital collectibles such as Non Fungible Tokens (NFTs).
Relative Strength Index & Accumulation/Distribution Metrics
At press time, the Relative Strength Index (RSI) was positioned above 50 but had recently experienced a downtick indicating that recent buying pressure had eased after reaching its current high of $16.11. Additionally, Accumulation/Distribution (A/D) rates had also decreased slightly noting that accumulation had slowed down after hitting its peak position earlier in June 2021.
Cumulative Volume Delta & Open Interest Rates
Further analysis with Cumulative Volume Delta (CVD), which tracks buying and selling volumes and overall sentiment showed an improvement on 1-hour charts from 18 June but had since flattened out signifying that buying pressure had eased off and entered a period of consolidation around these levels before further movements can be expected within the market for Solana [SOL]. Open interest (OI) rates have also fluctuated narrowly beneath 160 million indicating that there are still some traders who are expecting further movement within this asset class although it remains unclear whether these will take place in an upward or downward direction in response to external factors such as bitcoin’s price action beyond the 27k mark as well as NFT demand levels worldwide over coming months..
In conclusion, should bitcoin fail below 27K then there may be opportunities for buyers interested in entering into positions within Solana [SOL] at either its mid-range or lower levels between 14-15 dollars per token depending upon broader market conditions at each point in time respectively – whereas alternatively if bullish momentum continues then it may provide secondary buying opportunities targeting 17 dollars per token near March’s swing low should investors be willing take on more risk by investing at these points in time going forward .