Solana has experienced a buying spree from the DeFi Development Corp, leading to increased demand and investor confidence that could potentially see a rally to $176. The recent bullish market structure break for SOL saw it surpass the previous lower high at $143, although it struggled to push much beyond the $145 supply zone. A whale’s reduced exposure to Ethereum and accumulation of SOL added to the positive sentiment around Solana. The Defi Development Corp continued its buying spree, adding 88,164 SOL to its treasury on April 22nd and another 65,305 SOL tokens on Thursday, bringing their total holdings to 317,273 SOL valued at $48.2 million. This institutional investment led to a positive market reaction and reflected investor confidence in the Solana network protocols.
The bullish structure break for SOL on the 1-day chart indicated a clear path upward with minimal obstacles. The On-Balance Volume (OBV) was above the February and March highs, signaling increased buying pressure in April. The bullish Relative Strength Index (RSI) further supported a positive outlook for SOL. The $178 level was identified as the next key resistance zone above $143, with no significant resistance levels overhead until that point. The SOL liquidation heatmap provided insights into potential obstacles and liquidity pockets along the way.
Analysis of the 1-month and 3-month liquidation heatmaps indicated that the $155-$160 and $168 regions were likely immediate liquidity pockets that Solana could gravitate towards. Below the market price, liquidation levels clustered around $130 and $120 were also notable, although smaller in comparison to those overhead. The high demand for SOL, combined with liquidity pockets above, suggested a potential move towards $160 and $168, with short liquidations triggering a squeeze in prices to achieve the $176 target. It is important to note that this information is not financial advice, but solely the opinion of the writer.
In conclusion, Solana’s recent buying spree and institutional investment from the Defi Development Corp have boosted investor confidence in the cryptocurrency, leading to a potential rally towards $176. The bullish market structure break and positive market reaction point to a favorable outlook for SOL. Technical analysis suggests minimal obstacles in the path upward for SOL, with key resistance levels identified. The liquidation heatmaps provide insights into potential liquidity pockets and obstacles along the way, indicating a likely move towards $160 and $168 before reaching the $176 target. Investors should always conduct their own research and seek professional advice before making any financial decisions.
