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Over the past 48 hours, the bullish sentiment in the crypto market has ramped up significantly after Bitcoin (BTC) hit the $50k mark. This saw altcoins such as Solana (SOL) register good price pumps with SOL producing a 15% pump from the $105 support level.
However, a key price barrier continues to stand in the way of SOL achieving more bullish gains. Buyers have found the $117 resistance level impossible to surmount with the most recent bullish run to the level facing yet another price rejection.
This has led to the formation of a double top on the four-hour and daily timeframes. A double top is typically a sign of a trend reversal after a sustained trend The “tops” are usually peaks that are formed when the price hits a certain threshold that is difficult to break.
Despite this reversal sign, SOL buyers remained very active. This poses the big question: will SOL continue the bullish market sentiment and finally smash the $117 resistance or will profit takers halt the bullish momentum?
Bulls Retain Advantage
The price retracement at the $117 resistance may have slowed down the bullish momentum on SOL but the chart indicators showed key activity from buyers.
The Relative Strength Index (RSI) fell from the 68 mark but still remained above the neutral 50 with a reading of 53. This portrayed the buying pressure still present for SOL. In like manner, the Chaikin Money Flow (CMF) revealed the sustained inflow of capital, despite the price dip.
Together, this indicated that buyers could probably be ready to make another attempt to scale the critical resistance level. Traders can watch for a bullish candle close above the resistance level before opening a buy position.
Alternatively, if the selling pressure persists, buyers can wait for a better entry at the $105 support level. Overall, the market trend for SOL remains bullish. As such, traders should look out for buy opportunities in the short to medium term.
Price Outlook
Suggested price entries: $113 (current market price), $110, $105 (support level)
Short term target: $125 - $130
Long term target: $150
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.
