While SOL appears to be losing some bullish momentum on the lower timeframes, its 1-day chart shows huge bullish potential. This is on top of the bulls’ strong performance in July. As it stands, SOL has gained 45% this month and could see more gains.
Solana surpassed its previous high of $27.12 set in February to reach $32.
The venture above $30 did not last more than a few minutes but clarified the bullish intent.
The Solana [SOL] token had another bull season when it climbed above $18 in late June. It has since broken through two strong supply zones on the 1-day price chart. From a technical perspective, it provides another buying opportunity for position traders.
On-chain indicators also performed well. The number of active users increased slightly, and the deployment of smart contracts on the platform also saw a significant increase.
The daily chart shows a potential rally above $30 in the coming weeks
The 1-day put order block at $24 is highlighted in cyan. It formed in mid-April, but the recent price surge beat this supply zone. At the time of writing, it has been retested as support.
The recent rally bottom is located at the bullish breakout zone at $18.3. Fibonacci retracement levels show that the $25.23, $23.6, and $21.28 levels will provide support if SOL retraces further south. The RSI shows strong bullish momentum and the rising OBV trend suggests strong demand, driving the gains.
The open interest chart should fuel enthusiasm among long-term buyers
Solana is firmly bullish in July. Bullish sentiment among market speculators has also increased since late June. Coinglass’s chart shows a steady rise in OI, which is a good indicator of sentiment.
Therefore, SOL offers a good buying opportunity with a target price of $32 and $35.4 as the take-profit level based on the Fib levels. This idea will be invalidated on a break below the 78.6% retracement level of $21.28.