Solana $SOL goes to an upper range – Is the $23.93 target reachable?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Solana’s bullish target of $22.58 was successfully reached, but the development activity and weighted sentiment showed a decline. Solana, following Bitcoin’s trend, experienced a breakout by crossing $30K before slightly cooling off at press time. The addition of SOL staking services by Crypto.com has provided a much-needed boost to SOL, giving investors more options for maximizing their rewards.

Which way for SOL – consolidation, pump, or dump?

SOL appreciated by over 12%, rising from the channel’s lower boundary of $20 to the bullish target of $22.58. But the resistance range of $21.99 – $22.58 could slow the uptrend, especially if BTC fails to  maintain its surge beyond $30K.

However, as the overall market remains upbeat for higher moves, any BTC move beyond $30K could tip SOL bulls to break above the upper range of $21.99 – $22.58. Such an upswing could set SOL to retest the immediate overhead resistance of $23.93 – a 6% potential rally.

One likely trade setup for such a potential upswing could be a long position with an entry at $22.58 after confirming an uptrend continuation. The lower range of $21.99 will be the stop loss, and the immediate target will be $23.93. The supply zone at $26 can slow any further uptrend momentum.

Conversely, a close below $21.99 may attract more selling pressure and could set SOL to retrace to the channel’s upper boundary of $21.21 or the mid-level of  $20.57. These levels can act as shorting targets in such a downswing scenario.

Meanwhile, the Relative Strength Index (RSI) spiked to the overbought zone – showing a strong bullish sentiment and buying pressure. The On-Balance Volume (OBV) also saw an uptick, highlighting increased demand in the past few days.

Development activity and sentiment declined

At press time, the development activity declined, bringing down investors’ confidence, as shown by the drop in weighted sentiment despite the recent rally. The trend could undermine a strong recovery.

However, the open interest (OI) rate increased from April 10, showing an influx of money into SOL’s futures market. A cross above $23 alongside a rising OI will reinforce the bullish sentiment.