Solana rallies 27% in 6 days – Will $160 price level fall next for SOL?

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  • Solana did not see added buying pressure despite its impressive 27.2% bounce in the past six days.
  • Despite the shift in momentum, the range is expected to persist.

As a crypto investor with some experience under my belt, I have seen Solana [SOL] bounce impressively by 27.2% in the past six days, but it didn’t see added buying pressure at its range highs near $160. Despite the shift in momentum, I believe the range is expected to persist due to the stern resistance near that zone.

Solana’s price had reached the highest point it had touched in the last month once again. However, it seemed that the stubborn resistance around the $160 mark would prevent any further advance by the bulls.

News that the Solana network NFT sales were booming was an added positive for users.

The market indicated a potential for price growth driven by heightened demand. Yet, it’s important to note that recent brief uptrends in pricing might be followed by a reversal.

The month-long range and the $160 zone

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The 12-hour chart indicated a bullish formation for Solana. After reaching a peak at $210, it pulled back to hit the $122 mark, which represented a 78.6% Fibonacci retracement level, in April.

The internal, lower timeframe structure was bearish at press time.

The disparity, or white box imbalance, which is alternatively referred to as the fair value gap, aligned with the purple range’s peaks. This range encompassed prices ranging from $116 to $156. According to AMBCrypto’s analysis, a price reversal was anticipated at this resistance level.

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The OBV has failed to surpass the stated resistance level above it, implying a lack of significant buying interest. Conversely, the RSI indicates a bullish trend from the previous week, registering at 61.

The cluster of liquidity could cause short-term volatility

As a crypto investor, I closely monitor the liquidation levels data provided by Hyblock. Based on my observation, the price level of $160.4 appears to be noteworthy and could potentially draw Solana (SOL) prices towards it.

Once reached, the forced market buy orders could momentarily sweep SOL higher than $160.

If the price surges beyond the $165-$170 mark, it might indicate the bulls’ strength and potentially lead to further price increases. Conversely, a sudden drop before stabilizing within this range could be an indication of volatility.

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2024-05-07 16:07