Following Bitcoin [BTC], Solana [SOL] caused a breakout. BTC surpassed $30K, reaching $30.$K before somewhat cooling off at press time. Similarly, SOL reached its bullish target of $22.58 and slipped into a critical upper zone.
SOL received a much-needed boost, particularly after the exchange Crypto.com became the most recent to provide the SOL staking service. As a result, investors will have additional staking alternatives to optimize their gains.
SOL rose more than 12% from the channel’s bottom boundary of $20 to the bullish target of $22.58. However, the barrier region of $21.99 – $22.58 may limit the rally, particularly if BTC fails to maintain its push above $30,000.
However, with the entire market still optimistic about higher gains, any BTC rise above $30K could sway SOL bulls to break above the upper area of $21.99 – $22.58. An upswing of this magnitude might cause SOL to retest the immediate overhead barrier of $23.93 – a 6% potential rally.
A long position with an entry around $22.58 after confirming an uptrend continuance is one plausible trade setting for such a potential upswing. The stop loss will be in the $21.99 level, and the immediate goal will be $23.93. Any additional upward momentum may be slowed by the supply zone near $26.
A closure below $21.99, on the other hand, may draw more selling pressure and cause SOL to retrace to the channel’s upper limit of $21.21 or the mid-level of $20.57. In such a circumstance, these levels can serve as shorting targets.
Meanwhile, the Relative Strength Index (RSI) reached overbought territory, indicating a strong bullish sentiment and purchasing pressure. The On-Balance Volume (OBV) grew as well, indicating higher demand in recent days.
Despite the recent surge, development activity was declining at the time of publication, lowering investor confidence. A substantial recovery could be jeopardized by this trend.
The open interest (OI) rate, on the other hand, surged from April 10, indicating an injection of money into SOL’s futures market. A break above $23 paired with rising OI will bolster bullish sentiment.