In summary
SOL price increased by 9% over the week, with bullish CMF and ADX trends signaling sustained upward momentum.
Decreasing volume and declining CMF suggest buying pressure is cooling off, raising the possibility of consolidation.
Maintaining support at $211 is key for SOL’s uptrend; breaking resistance at $221 could target $246.
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Solana (SOL) price has increased by 9% over the past seven days, bringing its market capitalization back above $100 billion, currently standing at $103 billion. Despite this growth, SOL’s trading volume has decreased by 34% in the last 24 hours, standing at $2.4 billion.
Positive indicators like the CMF and a recent golden cross support the bullish momentum. However, whether SOL can sustain this upward trajectory or face a correction depends on its ability to hold the crucial $211 support level.
Solana’s CMF Remains High But Shows Decline From Peak
Solana’s Chaikin Money Flow (CMF) currently sits at 0.23, reflecting positive capital inflows into the asset. CMF measures the flow of money in and out of an asset over a specific period, based on price and volume. A value above 0 suggests net buying pressure, while a value below 0 indicates net selling pressure.
SOL’s CMF rose from near 0 on January 1st to 0.33 yesterday, signaling a strong surge in buying momentum during this period
At 0.23, SOL’s CMF remains in positive territory, suggesting sustained buying interest, albeit at a slightly reduced intensity compared to the recent peak. The decline from 0.33 may indicate that buying pressure has eased slightly, potentially hinting at a period of consolidation or slower upward momentum for the price.
For SOL to maintain its upward trajectory, the CMF needs to stabilize or rebound, reflecting renewed confidence from investors. However, a continued decline could signal weakening demand, increasing the possibility of a short-term price correction.
SOL Bulls Show Signs of Revival
SOL’s Average Directional Index (ADX) has surged to 45, a significant increase from 10.8 just four days ago, signaling a strong trend is forming. The ADX measures the strength of a trend on a scale of 0 to 100, with a value above 25 indicating a strong trend, while a value below 20 suggests weak or nonexistent momentum.
This sharp rise in ADX confirms that SOL is currently in a firm uptrend, reflecting strong market activity and confidence in its price direction
The ADX components provide further insights into the current trend. The +DI, representing buying pressure, is at 27.5, although it has declined from 35.8 yesterday, signaling a slight decrease in bullish momentum. Meanwhile, the -DI, indicating selling pressure, has increased to 12.6 from 8.6, suggesting bearish activity has picked up slightly.
Despite these shifts, the uptrend remains intact, as the +DI is still significantly higher than the -DI, supported by the strong ADX. However, the declining +DI suggests that Solana’s upward momentum might be stabilizing, and the market could enter a consolidation phase unless buying pressure resurfaces
SOL Price Prediction: Can it Reclaim $246 Soon?
Solana’s price hinges on whether it can maintain the crucial $211 support level. If this support is lost, SOL could enter a downtrend, with $203 being the next critical level to watch. Failure to hold above $203 could accelerate the decline, potentially pushing the price back to $185, reflecting a significant bearish shift in sentiment.
Conversely, the EMA lines are maintaining a bullish trajectory, signaling optimism for a potential upward move. A golden cross formed just two days ago, reinforcing the possibility of sustained momentum.
If the $211 support level holds, SOL’s price could rise to challenge the resistance at $221. Overcoming this level could pave the way for further gains towards $229. Should bullish momentum intensify, Solana’s price could target $246, representing a 16% increase from its current level.
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