- Solana is expected to bounce higher shortly and establish a range
- Market turbulence could drag prices below the key support level just below the current market price
As an experienced analyst, I believe Solana (SOL) is poised for a bounce higher in the near term and establish a range. However, market turbulence could drag prices below the key support level just below the current market price, presenting a risk that cannot be ignored.
Last week, Solana (SOL) encountered a setback when it failed to surmount the significant resistance point at $160. However, there’s been a glimmer of optimism for long-term investors due to the persistent increase in user activity metrics over the past few weeks.
As an analyst, I’ve noticed that a significant portion of the recent activity in Solana (SOL) has been driven by MEV bots, according to a recent article on AMBCrypto. This trend could potentially create challenges for SOL bulls, as it may negatively impact user experience. However, the question remains: can the SOL bulls overcome these obstacles? Alternatively, is the prevailing fear in the crypto market currently too intense to be surmounted?
The imbalance forced bulls to retreat toward $120
In simpler terms, the overall trend for Solana (SOL) in longer timeframes appeared bullish following its rally to $210 in March. Yet, the more recent price action showed signs of a bearish internal structure.
As a researcher studying market trends, I’ve observed that the rejection of the fair value gap at $160 resistance indicates that the bullish sentiment was not as strong as previously assumed.
In simpler terms, the Relative Strength Index (RSI) on the daily chart has remained below the neutral 50 threshold for much of April, indicating robust downward pressure or bearish momentum. Additionally, the On-Balance Volume (OBV) had been declining since mid-March. At the moment, the OBV is barely above another support area.
As a researcher studying the price trends of Solana, I would interpret an obvious decline below the current level as a potential sign of more downward pressure to come. In such a situation, it’s plausible that Solana prices could slide down toward the swing low of $98.38 or potentially even dip further.
Until then, the $122.38 Fibonacci support level is expected to yield a positive response.
Bullish and bearish targets based on liquidity pools
As a crypto investor, I found it intriguing how the insights from AMBCrypto’s analysis aligned with the technical support levels identified through Hyblock’s data. Specifically, I noticed that the $132 and $125 regions emerged as the next short-term zones of potential price support based on Hyblock’s analysis.
As a researcher studying market trends, I would explain it this way: Liquidity pockets may be drained prior to further price advancement. For bulls, the levels of $150 and $160 served as attractive spots to cash out their gains in the northern direction of the price chart.
Is your portfolio green? Check the Solana Profit Calculator
Bitcoins price instability may lead to a swift surge of pessimism. Consequently, Solana’s value could dip under the $122 threshold.
As a researcher, I’ve identified a potential swing trading buy opportunity with a target price of $160 based on current market trends and technical analysis. However, if the price drops below $122, this idea may no longer hold validity.
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2024-05-01 02:49