Solana: Here’s why bearish bias makes sense despite bullish momentum

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Solana [SOL] has bullish momentum behind it after a near 10% move upward from the lows of 2 September. At press time, SOL stood at $30.5.

In the same time period, Bitcoin [BTC] has traded sideways within the $19.6k-$19.9k levels. The surge in Solana prices was accompanied by increased demand.

In the futures market, Coinglass data showed a majority of market participants to be positioned long. Can this move upward be sustained, or have the bears woken up to push SOL lower once again?

Source: SOL/USDT on TradingView

In dotted green, the $32.64 level of former resistance was flipped to support in recent hours. In the past few days, SOL has faced rejection at this level. At the same time, the indicators showed a bullish bias.

The Awesome Oscillator (AO) climbed above the zero line and rise higher in the past 12 hours to show bullish momentum on the rise. The trading volume has also been slightly higher than what it was over the weekend.

The Chaikin Money Flow (CMF) dipped back into neutral territory, after a few days above +0.05.

Well, above +0.05 was indicative of significant capital flow into the market. The Fibonacci retracement levels (yellow) showed some resistance at the $34.34 and $37 levels. Hence, there was the possibility of a move higher.

Source: SOL/USDT on TradingView

On the one-hour timeframe, the indicators continued to have a bullish outlook. The Relative Strength Index (RSI) stood at 64.74. It has been well above neutral 50 over the past couple of days.

The inference was that short-term momentum was northward and strong. The On-Balance Volume (OBV) also saw a minor