Solana
Solana Rebounds 27% in 6 Days – Will the $160 Price Level Drop Next for SOL?
- Solana did not see any additional buying pressure despite its impressive 27.2% rebound over the past six days.
- Despite this change in dynamics, the range is expected to persist.
Solana [SOL] was once again at last month’s highs. Strong resistance near the $160 region looked likely to fend off bullish efforts.
The news that the Solana network’s NFT sales were booming was an additional positive for users.
This suggests the possibility of price appreciation due to increased demand. However, despite the short-term bullish price action over the past few days, a retracement could be imminent.
The one-month range and the $160 area
Source: SOL/USDT on TradingView
On the 12-hour chart, Solana’s structure was bullish. It retraced from the $210 high to the 78.6% Fibonacci retracement level at $122 in April.
The internal structure of lower timeframes was bearish at press time.
The imbalance (white box), also known as the fair value gap, coincided with the highs of the range (purple). This range spanned from $116 to $156. AMBCrypto expected price rejection from this resistance.
OBV did not break above the resistance level and did not signal strong buying pressure. Meanwhile, the RSI reflects last week’s bullish momentum with its reading of 61.
Cash hoarding could cause short-term volatility
Source: Hybloc
Data on Hyblock liquidation levels showed AMBCrypto that the $160.4 level was an area of interest. It is very likely to attract SOL prices there.
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Once reached, forced buy orders in the market could momentarily push SOL above $160.
This could cause volatility before prices return to the range. Alternatively, a move above the $165-$170 region would be a sign that the bulls were dominant.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.