Solana welcomed this week with bearishness after hitting the $48.38 peak on August 13. However, the alternative token remains weak during this publication as it surrenders the $40 mark amid continued bear assault. Nevertheless, retesting the near-term resistance line might translate to upsides after a minor retracement.
Solana has traded inside its present ascending channel since the mid-June sessions. It remained within resistance and support, and prices retested the latter over the past day. Also, SOL tested the support line more than four times in June & twice last month (July).
Also, it rebounded beyond that foothold early in August before. Moreover, Solana touched the support some hours before this publication. The alternative token has displayed a substantial decline in selling momentum after hitting the support line at $40.20. That indicates significant buying momentum in place.
This week’s bearish performance pushed Solana’s RSI (Relative Strength Index) beneath its 14-day Simple Moving Average and the 50% mark. Nevertheless, a slight pivot upward indicates some bullish momentum.
Can Bulls Back Healthy Rebound?
The sell momentum decline around the support mark signals upsides. Nevertheless, there’s no guarantee such an outcome will emerge. The market’s unpredictable and volatile nature could turn to support bearishness. However, some on-chain metrics highlighted upside possibilities.
Solana’s social dominance saw a slight increase the past day. Thus, the digital coin saw some visibility within the last 24 hours. Also, SOL’s Binance funding rate declined sharply during this timeframe. Also, a massive rebound appeared. The Binance funding rate rebound highlights a sentiment shift, matching the resistance retest.
Solana’s Transparent Weapon
Solana’s recovery received support from positive updates regarding its native borrowing and lending DeFi protocol, Solend. Recently, Solend revealed the launch of permissionless pools. That might trigger increased demand for the digital coin, especially in the long and mid-term. Also, it might excite market participants in the near term, supporting healthy recoveries.
However, Solana will follow broad market trends. Bears seem to dominate the space following Bitcoin’s failure to overcome the $25K mark. Thus, Solana will likely plummet in the upcoming sessions. SOL enthusiasts can witness downsides below $38.
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