The price of Solana (SOL) saw a 6% rebound over the weekend, reclaiming the $160 level on June 9. This surge came after a significant drop in price following the latest US Non-Farm Payrolls (NFP) jobs data on June 7. Despite the market crash, Solana’s open interest remained steady at $2 billion, indicating a potential bullish breakout phase ahead.
After the NFP data was released, Solana experienced a 12.6% correction, falling to a 20-day low of $153. However, the price rebounded by 6% to surpass the $160 level, showing increased demand in the market. Bull traders have been actively defending their positions to prevent further losses, with the open interest holding steady at $2 billion despite a 9% decline in price.
The resilience of Solana’s open interest during the price dip suggests a positive outlook for the cryptocurrency. If the asset’s open interest declines at a slower pace than its price downtrend, it indicates bullish rebound momentum. This can lead to a quicker market stabilization and a more sustainable recovery once the initial panic subsides. With the open interest holding above $2 billion, Solana could see a rapid price breakout above $180 in the near future.
Looking ahead, Solana may face resistance around the $165 level, where the 10-day SMA price is located. If the bulls can push through this resistance, the price could advance towards $180 as predicted. However, if the bears regain control, Solana may experience a pullback from the $165 sell-wall. In this scenario, short-term support could be found around the $157 level. Overall, traders can expect a narrow channel of $155 – $170 in the current market dynamics.
In conclusion, Solana’s price rebound and steady open interest signal optimism among traders for a potential breakout in the near future. Despite the recent market volatility, the cryptocurrency has shown resilience and support from bull traders. By closely monitoring the key resistance levels, traders can anticipate potential price movements and adjust their strategies accordingly. As the cryptocurrency market continues to evolve, Solana remains a key player to watch for potential trading opportunities.
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