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Solana’s (SOL) price action has been in a consolidation zone over the past three days. A close look at the altcoin’s price action on the lower timeframes showed that SOL has traded between the small price zone of $175 to $180.
This trading pattern on the lower timeframes typically occurs before a major bullish move, as evidenced in the first and second weeks of March (blue zones on the chart).
Are buyers going to experience a third bullish wave in the space of a month or can sellers break the bullish defense at the $175 support level for more shorting gains?
This Price Level Remains Vital for Buyers
SOL began April with a price rejection at the $205 price level. Since then, it has made a lower high at $191 before trading at the current price level of $175.
The $175 price zone is a critical one for buyers, due to the buy orders at that level. Consequently, sellers have found the level difficult to break. With bullish sentiment returning to the market as occasioned by Bitcoin reclaiming $70k, buyers could be primed to re-establish the bullish dominance on SOL.
Two profit opportunities exist for buyers, if SOL posts a bullish candle close on the four-hour timeframe. Buyers can trade SOL at the current market price with the first profit level at $192 for 8% gains and the next profit level at $208 for 15% gains.
Once SOL breaks the $210 price range, it could go on a deep bullish run with an all-time high very likely.
Alternatively, a break of the $175 support level could see SOL sell further to the $160 or $140 support levels.
Positive Funding Rates Accompanied by Rise in Open Interest
Data from Coinalyze showed that the futures market exhibited bullish sentiment with the funding rate staying positive within the timeframe under consideration. Similarly, the Open Interest experienced a 1.14% jump over the past 24 hours.
This signaled that market participants were opening more long contract positions in anticipation of a SOL price increase.
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.
