Solana [SOL] has seen a recent surge in liquidity bridging from competing chains, signaling a vote of confidence from users in the network. Despite not breaching the $143 resistance, the steady buying pressure has instilled faith in investors.
Over the past month, there has been a significant flow of liquidity to Solana, totaling $120 million. The majority of this inflow came from Ethereum [ETH] with $41.5 million, followed by Arbitrum [ARB] with $37.3 million. This influx of liquidity has resulted in a rally for Solana-native memecoins like POPCAT, which have seen aggressive growth from the previous week’s lows.
While Solana initially had a bearish market structure on the daily chart, the increased buying pressure has the potential to change this outlook. The On-Balance Volume (OBV) has been steadily rising over the past ten days, reaching new highs and challenging levels not seen since January. Additionally, SOL’s Relative Strength Index (RSI) has flipped the neutral 50 level to support, indicating bullish momentum on this timeframe.
Looking ahead, the $143 level remains a key resistance to watch. Although Solana has made gains above $120, the lower timeframe charts show a more bullish outlook. The $150-$160 region is identified as a short-term price target, with strong liquidity clusters overhead. Conversely, the $123 area presents an attractive target to the downside, with nearly $5 billion in liquidations clustered around it.
In conclusion, despite the challenges of breaking the $143 resistance, the influx of liquidity and increased buying pressure suggest that Solana could soon see a reversal in its market structure. As always, it’s important to note that the information presented is the writer’s opinion and does not constitute financial advice.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion