Solana eyes $120: Will THIS be SOL’s price catalyst?

A liquidity run for Bitcoin could spur Solana’s prices higher.
The local highs at $160 was a strong magnetic zone.

As a seasoned crypto investor with scars from more than a few market cycles etched onto my trading journal, I can’t help but feel a sense of familiarity when I look at Solana [SOL]. The token seems to be dancing an old dance, and I’ve seen this waltz before.

In a broader perspective, it appears that the price of Solana (SOL) is forming a ‘bear pennant’, which suggests that its value may remain confined in a narrow band for approximately 4-6 weeks, as per analyst predictions. So far, this forecast seems to be materializing.

Again, the token appeared to be moving towards its lowest points, yet there might be a temporary price surge coming up. In the near future, a Bitcoin [BTC] liquidity rush is expected, which could potentially boost the Solana (SOL) bulls.

Solana falls toward the Fibonacci retracement level again

Solana eyes $120: Will THIS be SOL’s price catalyst?

The price range between $122 and $187 remains valid, with no lower bounds having been broken as of yet. Over the last ten days, the On-Balance Volume (OBV) shows a consistent decrease, suggesting strong selling activity.

On the 25th of August, Solana experienced a decrease of 21.7%, but it started off positively on Monday with an increase of 2.58% at the time of reporting. However, the On-Balance Volume (OBV) being close to its local lows suggests a concerning sign that Solana bulls may not be as strong as they were previously.

The RSI was also at 38 on the daily chart to indicate downward momentum was superior.

Returning to around $120 might offer a good chance for purchasing, yet it’s crucial to exercise caution as there may be a more significant drop in prices on the horizon.

Magnetic zones to pull prices higher?

Solana eyes $120: Will THIS be SOL’s price catalyst?

Prices for Bitcoin in the near future might increase due to liquidation points at $140 and $150. This is more likely if Bitcoin starts a liquidity surge within the next few hours.

Realistic or not, here’s SOL’s market cap in BTC’s terms

Nevertheless, this did not provide absolute assurance, as there were accumulating liquidation points at approximately $126 as well.

If the prevailing bearish market trend persists, Solana might experience increased volatility and potentially drop even lower than $126.

2024-09-03 04:07

Solana falls toward the Fibonacci retracement level again

Magnetic zones to pull prices higher?

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