Solana (SOL) is currently at a crossroads, teetering on the edge of a potentially bullish breakout or a pullback, as analysts share their divergent perspectives. According to market analyst Ali, Solana’s 12-hour chart displays an ascending triangle formation, a bullish continuation pattern hinting at potential gains for SOL.
However, Ali issues caution, emphasizing the importance of a sustained close above the $68.2 mark to trigger a bullish breakout towards $90. The $60 support level also looms large, with any signs of weakness potentially causing a surge in profit-taking, pushing SOL down to $47.
Cryptonary’s Analysis: Is Solana Due for a Pullback?
Adding to the discourse, analyst Cryptonary takes Twitter to ponder if SOL is due for a pullback. The open Interest (OI) for SOL has surged to new highs, and funding is aggressively rising, suggesting a significant influx of long positions. Despite SOL’s apparent technical strength, recovering to $61 and breaching the local resistance at $65, Cryptonary also issues a cautious stance.
Delving into the technical analysis, SOL has found support at $61, a positive signal that invalidates the previously bearish structure. The key lies in SOL’s ability to claim levels above $65, as retesting $69 becomes possible. The cautionary flag is raised again with a substantial support range of $59 to $61. A breach of this level could spell a more pronounced decline.
Market mechanics further complicate the scenario. Open Interest has surged to new highs, indicating increased market activity. The OI-Weighted Funding Rate has reset but is now escalating alongside rising prices, suggesting an accumulation of long positions. Cryptonary warns that the market is overheated, with longs potentially outweighing the market balance.
Cryptonary’s outlook suggests a potential short-term pullback to flush out excessive long positions, with a critical eye on the $61 support level. Short-term trades are not on the radar unless funding continues to rise, pushing the price to $66; at this point, a reversal to short positions may be considered.
For Dollar-Cost Averaging (DCA) enthusiasts, the strategy is to put DCA on a pullback to $52, with a more aggressive approach if SOL dips below $48. As Solana’s fate hangs in the balance, investors brace themselves for a decisive move in either direction.
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