•Solana [SOL] recently broke out of its trading range of $15.29 – $17.45 and faced a hurdle at $24.45.
•The Relative Strength Index (RSI) and Money Flow Index (MFI) were flat on the three-hour chart, indicating that buying pressure was stagnating.
•The next short-term trading range of SOL could be between $21.72 – $24.45.
Solana (SOL) recently experienced an upside with its price breaking above its recent trading range of $15.29 – $17.45. However, the bullish momentum was met with a hurdle at $24.45. At the time of writing, it was trading at $23.65 and flickered red, indicating that bears were on site. Along with Solana, Bitcoin (BTC) also faced a short-term price rejection at $20,995 during the same period. Therefore, the short-term outlook of SOL could be witnessing a trading range and a possible retest at the $23.45 level.
Analyzing the relative strength index (RSI) and money flow index (MFI) on the three-hour chart, it can be observed that buying pressure has stagnated. The RSI and MFI were both in the overbought zone, which indicates that the bullish momentum was still relatively strong at press time. Therefore, SOL could attempt to break above the current trading range of $21.72 – $24.45, if Bitcoin is able to overcome the current short-term resistance of $20,995.
On the other hand, if bears gain more influence and the selling pressure intensifies, SOL could possibly dip below $21.72. However, such a downtrend could find steady support on the 61.8% Fib level of $20.95 and invalidate the bullish bias. Furthermore, the trading volume of SOL has witnessed an increase but the sentiment and development activity has declined. It is likely that investor confidence in SOL has dwindled to some extent after witnessing an upside over the past few weeks.
Overall, SOL could witness a fall in the days to come if the bears gain an upper hand in the market. The next short-term trading range of SOL could be between $21.72 – $24.45, and the upside will depend on how Bitcoin fares against its short-term resistance.