AMBCrypto found that the spot CVD has been falling over the past two days, coinciding with the pullback from $161.8.
- Solana faced another rejection from the two-month highs. The buying was steady but did not reach breakout levels.
Solana [SOL] was unable to clear the $163 resistance level on its third attempt since August. In the past two days, it saw short-term price volatility and is down by 3.4% since the local high at $161.8.
Increased whale holdings and rising social media activity suggested a bullish outlook for Solana in the coming days. On the other hand, a drop in the spot demand could be an early sign of a deeper pullback.
Solana price action remains bullish
Source: SOL/USDT on TradingView
The bulls were fighting for control of the mid-range level at $154, which coincided with the 50% retracement level. However, the trend was bullish in September, after the $140 resistance level on the lower timeframes was breached.
The A/D indicator has steadily trended higher since July, a sign that buyers were stronger in the past three months. The daily RSI was also bullish.
Yet, swing traders looking to go long will have to wait until the $162-$165 resistance zone is breached. Once this occurs, the bulls can target the range high of $187 next.
Despite the bullish signals from the accumulation/distribution, the trading volume was still at the average of the past six weeks. The lack of volume as SOL approached a key resistance was a worry for holders.
Coinalyze trends indicate heightened volatility
Source: Coinalyze
AMBCrypto found that the spot CVD has been falling over the past two days, coinciding with the pullback from $161.8. The increased selling near a resistance zone meant that the chances of a breakout were reduced in the short term.
The funding rate was still positive, and the Open Interest trend was still upward. The dip affected the OI too, but it has begun to recover in recent hours.
Overall, a pullback below $154 appeared likely due to the volume.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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