Amid Bitcoin’s consolidation around $70000, the crypto market is altcoin It witnessed high volatility, which shifted the price trajectory sideways. Not exempt from this uncertainty, Solana coin exhibits a sideways movement logic within two converging trend lines. The 4-hour chart reveals this move as a pennant pattern formation, which is a common structure used by buyers to regain depleted bullish momentum.
Investor Confidence Peaked as Solana’s Open Interest Passed 3 Billion Dollars
Over the last two weeks Solana’s price has definitely resonated between two converging trend lines of a pennant formation. This chart pattern represents overbought followed by consolidation to stabilize the rally and prepare for the next bounce.
On March 29, SOL price broke the triangle resistance and moved higher, indicating a renewed recovery sentiment among traders. The post-breakout rally increased the price of SOL by 3%, causing it to currently trade at $196.
solanais the fifth largest company with a market value of $3.57 billion. cryptocurrency maintains its position as a unit.
If the breakout continues, crypto buyers could reach the $238-240 milestone with a 21% rally.
According to data from Coinglass, open interest in Solana rose to over $3 billion during the recent rally. This increased open interest indicates increased confidence among investors and is associated with increased market activity and the expectation of speculation.
Technical Indicator
Exponential Moving Average:For over a month, the 4-hour 100 EMA slope has marked a crucial level for buyers to defend, offering favorable support to coin buyers during the market pullback.
Average Direction Index: The ADX slope rose to 18% as the pennant formation broke out, indicating that buyers have enough momentum to mount a long-term recovery.
