- Solana and Jupiter did not witness a deep retracement despite a flurry of selling.
- JUP, in particular, showcased firm bullish belief in the short-term.
Solana [SOL] surged toward $200 once more as meme coin trading activity surged in March.
The rise in unique addresses ensured demand for the network, which could see the token rally past $209, the local high, in the coming weeks.
Jupiter [JUP] climbed toward its ATH at $2 and has a strongly bullish outlook. With Bitcoin [BTC] back above the $70k mark, buyers have reason to be excited.
Solana’s pullback was far shallower than expected
Source: SOL/USDT on TradingView
The 12-hour chart showed that the market structure of SOL remained bullish. The recent swing low posted at $105 early in March is the level bears need to beat to flip the structure in their favor.
At press time, the odds of this happening anytime soon were minimal. The RSI did not drop below neutral 50 even when BTC prices fell, unlike many other large-cap altcoins.
The OBV was slowly recovering, but has not made new highs recently.
The trading volume diminished in the second half of March, even though prices recovered from the dip to $160. This suggested that the bullish conviction from earlier this month was absent.
Source: Hyblock
The one-month lookback heatmap showed that the closest areas of interest were $200.5 and $180. Beyond that $210 and $170 also had a sizeable number of liquidation levels.
Solana is likely to climb higher and collect the liquidity at $200 and $210, provided Bitcoin does not exhibit strong selling pressure in the coming days.
Thereafter, demand and trading volume would need to surge for SOL to sustain the rally.
Jupiter ATH is a matter of time
Source: JUP/USDT on TradingView
Jupiter has a market capitalization of $1.996 billion at press time, making it the 61st largest crypto by size. Its all-time high is at $2. At press time, the market structure on the 6-hour chart was firmly bullish.
The OBV has not sunk below the local lows even when prices retraced to the 50% Fib level. Hence, selling pressure was not dominant.
The RSI also remained above neutral 50 for almost all of March, reinforcing the idea of an uptrend.
The $1-$1.2 and $0.71-$0.8 were two strong areas of demand. A revisit of these regions should provide a good risk-to-reward buying opportunity for investors and swing traders.
Source: Coinalyze
While the OBV remained flat, the spot CVD has shot skyward in the past three weeks. This was evidence of sustained buying pressure from eager bulls. The futures market also noted bullish conviction.
Read Solana’s [SOL] Price Prediction 2024-25
The Funding Rate has been climbing higher, reflecting an increased number of participants going long.
The Open Interest also trended catapulted higher in recent days following the price surge, outlining short-term traders’ bullish sentiment.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
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