- Solana continues to be strong.
- Trying to catch exact highs can be counterproductive for traders.
Solana (SOL) bulls refused to succumb to bearish pressure. Even when Bitcoin (BTC) fell below the $70,000 level on March 15, SOL showed an upward trend. On this day, the stock price exceeded $180.
Data from DefiLlama shows that Solana’s total value locked (TVL) has surged more than 80% in the past month. It also recorded the highest DEX trading volume for two days in a row, surpassing Ethereum (ETH).
Should investors fear a pullback or follow the trend?
Source: SOL/USDT on TradingView
Solana’s major retracement has not occurred since falling to $79 in January. RSI on the daily chart hit 88, deep in overbought territory.
It doesn’t indicate an imminent downturn, but it does highlight a heated situation.
OBV has been trending upward since the end of January. Buying volume has been phenomenal and SOL has increased 26x since its 2022 low of $8. Above $180, resistance overhead was lacking.
The $259 and $276 levels were areas of interest, as was the $202 area. However, since the market has been parabolic recently, this area could be retested as support.
Analysis of the lower time frames shows that the $178 and $162 support levels will also be key.
A drop below this level would indicate a bearish structure on an hourly basis and a possible shift in momentum towards higher levels.
Speculative activity depicts maniacal bullishness.
Source: Coinglass
The open interest chart showed no signs of slowing down. According to Coinglass data, Solana’s OI has reached never-before-seen highs. This comes alongside a price jump from $120 to $209 in just over a month.
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OI jumped from $1.71 billion on March 6 to $2.88 billion at press time on March 18. This phenomenal rise indicated extreme greed, but did not encourage short selling.
There is also no guarantee that a decline is imminent. The region’s best is yet to come.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.