A Short-Lived Bounce or a Bear Trap in the Making?

• Solana has spiked over 3%, now trading at $208.
• SOL’s trading volume has surged by more than 55%.

The bearish pressure in the crypto market has begun fading, with the 2.43% spike. The bullish presence has pushed the assets up, leading to their recent highs. The largest asset, Bitcoin (BTC), is trading at around $112.1K, while Ethereum (ETH), the largest altcoin, currently hovers near $4.1K. With the broader fear sentiment in the market, Solana (SOL) has gained by over 3.54%. 

In the morning hours, the asset traded at around a low of $198.32. As the bulls stepped in, Solana faced the pressure on the upside and rose to test the vital resistance levels between $198.39 and $210.83 to confirm the uptrend. It eventually climbed to a high of $210.90. Upon reinforcing the bullish dominance, the price may see more gains. 

At the time of writing, Solana traded within the $208.92 zone, with its market cap settled at $113.14 billion. In addition, the daily trading volume has increased by over 55%, reaching $5.24 billion. As reported by the Coinglass data, the market has witnessed a liquidation event of $37.81 million worth of Solana in the last 24 hours. 

The Bullish and Bearish Scenarios for Solana’s Next Price Zone

Both the Moving Average Convergence Divergence and signal lines are below the zero line. This crossover implies the overall bearish trend. As MACD tries to climb above zero, the bullish momentum for Solana might build for a trend reversal. The Chaikin Money Flow (CMF) indicator at 0.26 hints at the strong buying pressure in the market. As the value is above zero, the capital is flowing into the asset, suggesting accumulation, showing a positive sign and healthy market demand.

Solana’s daily Relative Strength Index (RSI) at 54.97 indicates that the asset is in a neutral to slightly bullish zone. It shows a mild uptrend but is far from the overbought level. Moreover, the Bull Bear Power (BBP) reading found at 6.53 suggests the bullish dominance. The SOL market shows clear bullish momentum, and the uptrend is likely to continue if the pressure holds, with the bulls actively pushing the price upward.

If the Solana bulls gain enough momentum to push the price up, it will find the crucial resistance at the $209.02 range. Further bullish correction might trigger the formation of the golden cross and send the price above the $209.12 level. On the downside, assuming the asset loses ground and retraces toward the $208.82 range, the fall could strengthen the bearish correction. Eventually, the potential death cross may take place to drive the SOL price even lower.

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