Recent market activity has seen Solana [SOL] break out of a bullish structure on its daily chart. While the resurgence of Bitcoin [BTC] in the past week brought some optimism to Solana bulls, technical indicators did not entirely align with this sentiment.
In the initial days of September, SOL experienced a 13.13% decline from its peak of $138.13 to $120 by Friday, September 6. However, since then, it has managed to bounce back by nearly 15%, recouping all the losses incurred in the previous week.
Targeting Mid-Range Resistance for Profit-Taking
The range formation (highlighted in purple) spans from $122 to $187, with the mid-range level positioned at $154.33. The recent revisit to the range’s lower bounds marks the fourth instance since June.
The bullish market trend was coupled with an increase in buying volume, as evidenced by the OBV indicator surpassing the previous week’s highs. Moreover, the RSI was on the cusp of crossing above the neutral 50 level. These positive indications suggest that SOL might be gearing up for a significant upturn.
The upcoming target is the mid-range level at $154. However, achieving this goal may be challenging, especially if Bitcoin faces resistance in the $61k-$62k range. A setback for BTC could drag down the entire altcoin market, including SOL.
Prepare to Seize Buying Opportunities on Dips
During the latest upward price movement, the liquidity pocket at $138-$140 was cleared. The subsequent liquidity targets lie at $142 and $150, though Solana might not reach these levels directly. Instead, a temporary dip seems probable.
This expectation is driven by the bullish skew in short-term liquidation levels. Currently, the cumulative liquidation levels delta leans heavily positive, signaling an imbalance towards long positions. This imbalance typically triggers a price compression in the opposite direction to gather liquidity.
Additionally, analysis from CryptoCrypto identified the $133 and $135 levels as short-term targets based on the liquidation levels chart. A retest of this price zone could present a buying opportunity, albeit requiring buyers to watch for signals of a rebound on lower timeframes.
Disclaimer: The opinions expressed herein do not constitute financial, investment, trading, or any other form of advice; they solely reflect the author’s perspective.