Solana (SOL) Up 15% with the Bulls Eyeing a Return to $50

Key Insights:

• In the week ending June 5, Solana (SOL) slumped by 14.3% to end the week at $38.49.
• Crypto investor sentiment across the broader crypto market shifted sharply this morning, supported by the end of a 9-week losing streak for bitcoin (BTC).
• Technical indicators remain bearish, with SOL sitting below the 100-day EMA.

On Sunday, Solana (SOL) fell by 1.23%. Partially reversing a 1.94% gain from Saturday, SOL ended the week down 14.3% to $38.49.

Sunday’s pullback came during a mixed session for the broader crypto market.

For the broader crypto market, however, an end to bitcoin’s (BTC) nine-week losing streak appears to have done the job.

This morning, a bitcoin visit to $31,600 levels delivered SOL and the broader crypto market with support.

Momentum Trading Delivers Solana (SOL) with Much-Needed Support

There were no major news stories to deliver SOL and the broader market with support.

Following Friday’s market response to the US nonfarm payrolls and the NASDAQ 100’s 2.47% slide, risk sentiment improved today.

At the time of writing, the NASDAQ 100 Mini was up 184.25 points, with the Dow Mini up 279 points.

The futures point to a bullish US market open that would follow on from the bullish sessions in Asia and Europe.

For SOL, the liquidation numbers also reflected the shift in investor sentiment.

According to Coinglass, 24-hour liquidations stood at $6.02 million. Over the 4-hour and 1-hour time periods, however, selling pressure has subsided.

Total liquidations over 4 hours stood at $0.839 million and $0.084 million over 1-hour.

Solana (SOL) Price Action

At the time of writing, SOL was up 15.04% to $44.28. A bullish morning saw SOL surge from an early morning low of $38.31 to a late morning high of $44.65.

SOL broke through the day’s Major Resistance Levels to come within range of the 100-day EMA ($45.47) before easing back.

Technical Indicators

SOL will need to avoid sub-$44 and the Third Major Resistance Level at $43.51 to support further upside this afternoon.

A move through the morning high of $44.65 would bring $45 levels and the 100-day EMA into play.

In the event of an extended rally, the bulls could target a move towards $50.

A fall through the Major Resistance Levels and the $38.82 pivot would bring the First Major Support Level at $37.50 into play. Barring a bearish afternoon session, SOL should steer well clear of sub-$37. The Second Major Support Level sits at $36.50.

The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. SOL sits below the 100-day EMA, currently at $45.47. This morning, the 50-day EMA closed in on the 100-day EMA. The 100-day EMA also narrowed to the 200-day EMA, both bullish signals.

A move through the 100-day EMA would bring $50 into play.