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Solana (SOL) looks set to recover from yet another bearish drop with buyers looking to leverage the bullish strength at the $140 support level to drive a price rebound.
Earlier, SOL suffered another price rejection at the $160 resistance level after it had rebounded from the $130 price zone. With the entire market still experiencing the bearish sentiment, SOL buyers will be hoping to be a shining star in a sky full of gloomy price action.
Early Signs of Life for SOL Buyers
April began on a bearish note for Solana. Its price suffered a 35% dip dropping from $204 to $126 between April 1 to April 16. The selling pressure was noticeable at the first price recovery attempt with SOL hitting a brickwall at the $160 price zone.
However, the early outlook from the price action on the four-hour timeframe displayed promising signs for buyers. The $140 support held steady after the dip from the $160 resistance to highlight the bullish strength at the level.
Thus, buyers can look to go long again from $140 with a short term target at $160 and a long term target at $180. Despite the bullish tendencies, another rejection at $160 could keep SOL locked in a compact price range.
In the meantime, the Relative Strength Index (RSI) hinted at a recovery, as it moved toward the neutral 50 mark. Yet, the Moving Average Convergence Divergence (MACD) remained bearish.
Futures Market Leans Bullish
The returning bullish sentiment was reflected in the Open Interest rising by 3.03% over the past day. This was according to data from Coinalyze. A rising open interest hints growing interest by market participants, reflecting bullish sentiment.
The Funding Rate was also mildly positive which showed that long positions were gaining the ascendancy over short positions in the derivatives market.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.
