Solana’s performance in the market showed signs of both bullish and bearish trends in a 1-day market structure. While there was heightened demand and increased transaction activity driving prices above $120, a strong supply zone around $140 posed a challenge for bulls looking for a long-term recovery. Despite this, Solana outpaced Ethereum in various aspects, including the SOL/ETH pair making new highs and seeing higher inflows compared to the Ethereum network. The question remained whether these factors were enough to sustain a price rally.
The $143 level marked a crucial point in the downtrend over the past three months, with the need to breach it to flip the market structure bullish. Early indicators suggested that this outcome could be achieved in the following week or two, with the RSI climbing above neutral 50 and the OBV challenging previous highs. Rising buying pressure was seen, potentially driving prices above $143, although caution was advised for traders and investors until then.
A liquidation heatmap highlighted key levels such as $150 and $158 as significant magnetic zones, containing over $2 billion in liquidations. The $136-$142 range also formed a substantial liquidity cluster, with a notable liquidation pocket at $95 further south. Based on the heatmap and technical indicators, a move towards $150-$160 appeared likely in the near future. However, the ability of bulls to hold the $140 level as support and maintain their position was uncertain, dependent on Bitcoin’s recovery and market sentiment.
In conclusion, Solana’s market performance showed mixed signals with bullish indicators like increased demand and transaction activity, while facing challenges from a strong supply zone around $140. The network outpaced Ethereum in various aspects, hinting at the potential for a sustained price rally. Key levels of liquidations and liquidity clusters were identified on the heatmap, suggesting a probable move towards $150-$160 in the coming days. The ability of bulls to maintain support at $140 and positive market sentiment would determine the direction of a potential bullish trend, contingent on Bitcoin’s recovery. Remember, this information is the writer’s opinion and not financial advice.
