Can Solana (SOL) Break the Downtrend and Hit $240?
After reaching an all-time high of $264, Solana (SOL) experienced a slight pullback, losing over 20% of its value in a span of three weeks.
In the month of December, SOL made efforts to reverse its recent downtrend, showing a 14% increase as it retested the support level formed back in March. The big question now is whether SOL can break free from its downtrend and continue its upward trajectory.
Forecasting Solana’s Price Movement
When SOL consolidated at $210 in November, it set the stage for its climb to $264, the all-time high. The March highs acted as a crucial support level, one that could determine SOL’s future movements.
Recent attempts at recovery faced resistance at the higher end of the downtrend channel, currently around $235. However, breaching this level could signify the end of the short-term downtrend and pave the way for a bullish run towards $248 or even $264.
Despite these positive signs, the Relative Strength Index (RSI) has failed to exhibit strong movement above the neutral level in December, indicating a potential lack of demand that might delay a significant breakout for SOL.
If rejected again at the range high, SOL might retrace towards the mid-level or March highs, creating a temporary roadblock in its climb.
Targeting a $245 Breakout
According to Conglass’s liquidation heatmap, a critical liquidity level can be identified around $244-$245, signaling a potential breakout point for SOL from its downtrend.
Additionally, the daily charts indicate another liquidity area above $220, positioned at the channel’s midpoint, underscoring a potential resting place for SOL before further upward movement.
Overall, the liquidation heatmap data suggests that if SOL struggles at the range high before attempting to break out again, it could retreat towards $220 as a temporary consolidation point.
Despite the short-term price uncertainty, Bitwise, an asset manager, remains optimistic about SOL’s long-term outlook, forecasting a price target of $750 by 2025.
Disclaimer: The content of this article is the author’s personal opinion and should not be considered financial advice or a recommendation to buy, sell, or hold any assets.