For approximately half a year, Solana [SOL] traded within a range bounded by $122 and $187 until recently breaking out above this level. The altcoin has its sights set on reaching $290 as it aims to surpass its previous all-time high of $259.96.
Solana has outperformed both Ethereum [ETH] and Bitcoin [BTC] in the past week, with expectations pointing towards a continued bullish trend with a potential correction to around $184 in the near future.
Predictions Suggest a Potential 21% Increase in Solana Price
The breakout from the trading range was marked by strong bullish momentum, accompanied by a surge in trading volume. The positive capital flows, indicated by a CMF of +0.21, signal a notable uptrend in the SOL market, making the outlook for Solana quite optimistic.
Fibonacci levels, based on the rally from February to March, indicate that Solana’s next targets could be at $241 and $291. While the market may witness some significant pullbacks amidst the bullish excitement, Solana appears well-positioned for a sustained uptrend in the long run.
The continued presence of the Awesome Oscillator above zero for the majority of the past six weeks showcases the prevailing buyer momentum, suggesting further upward movement. However, the $210 resistance level from 2024 may pose a challenge to the ongoing bullish momentum.
Overcoming the $210 Barrier: A Major Hurdle for Solana
Analysis of the 1-month liquidation heatmap reveals a concentration of liquidation levels in the range of $202 to $225, likely acting as a temporary obstacle for Solana buyers and potentially triggering a short-term reversal in the trend.
On the downside, notable liquidity is observed around $150, indicating that a retracement to such lower levels seems improbable, especially with Bitcoin trading above $70k.
Examining the 48-hour heatmap, the $184 level emerges as a crucial short-term support area, likely to attract price action before any further upward movement takes place.
As a result, any pullback to the $180-$190 range should be seen as a favorable opportunity for buyers.
Disclaimer: The views expressed in this analysis do not constitute financial advice, investment guidance, trading tips, or any other form of professional counsel; they are solely reflective of the author’s personal opinions.