Solana [SOL] has been displaying signs of bullish momentum in the market recently, with increased transaction activity on-chain and short-term positive indicators pushing prices above $120. However, the presence of a strong supply zone around $140 poses a challenge for the bulls to initiate a sustainable long-term recovery.
The Solana network has outpaced Ethereum [ETH] on various fronts, including the SOL/ETH pair reaching new highs and heightened inflows compared to the Ethereum network. These factors raise the question of whether they will be sufficient to drive a prolonged price rally for Solana.
The $143 level has been a significant resistance point, marking the lower high of the downtrend over the past three months. Breaking above this level is crucial to flipping the 1-day market structure in a bullish direction. Early indications suggest that this outcome may be achievable in the next week or two.
The Relative Strength Index (RSI) has climbed above the neutral 50 level, signaling a shift towards bullish momentum. Additionally, the On-Balance Volume (OBV) is challenging the highs set in early March, indicating a rise in buying pressure that could propel prices beyond $143. However, caution is advised until this level is convincingly breached.
The liquidation heatmap highlights key levels of $150 and $158 as significant magnetic zones with over $2 billion in liquidations. The $136-$142 range also forms a substantial liquidity cluster. A move towards $150-$160 seems likely in the coming days based on the heatmap and technical indicators.
The ability of the bulls to hold the $140 level as support and sustain their position remains uncertain. Success at this level could signal the beginning of a bullish trend, contingent on a recovery in Bitcoin [BTC] and positive sentiment in the broader crypto market.
In conclusion, Solana’s recent performance against Ethereum and the increased buying pressure provide hope for SOL investors. While challenges lie ahead in breaking key resistance levels, the overall outlook for Solana appears positive, pending further market developments and external factors.
Disclaimer: The information presented in this article is the writer’s opinion and does not constitute financial, investment, trading, or any other form of advice.
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