Connect with us
Active Currencies 12987
Market Cap $2,425,970,879,300.80
Bitcoin Share 50.47%
24h Market Cap Change $-0.11

Solana: Why a move past $60 could happen soon

2min Read

The market structure on the one-day and three-day charts was firmly bullish. But it was unclear when a breakout could occur.

Solana forms a short-term range, but a move past $60 could arrive soon

Share this article


Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Solana was trading near the $60 level, which it previously tested back in May 2022.
  • The higher timeframe price charts showed further upside was likely, but the market could decide to cool down and consolidate above $50.

Solana [SOL] has tested the $50 support zone twice in the past two weeks. On each occasion, the bulls have been strong enough to bring about a bounce in prices.

AMBCrypto previously reported that the protocol’s fees have increased by 103% and forecast a bullish future in the coming weeks.

Trading volume on decentralized exchanges (DEXes) within the Solana network witnessed a massive hike as well. Increased network activity was also seen, and reflected increased demand for the token.


The long-term prospects were firmly in favor of the bulls

Solana forms a short-term range, but a move past $60 could arrive soon

Source: SOL/USDT on TradingView

Since May 2022, the $59.3 level has not been defeated as a resistance. Back then, a temporary bounce to this level was followed by a swift move lower. This showed that $59.3 was a critical level, alongside $48.4.

The $48-$50 zone has been flipped to support in recent weeks of trading. The market structure on the one-day and three-day charts was firmly bullish. Moreover, both timeframes showed that SOL could form a range in the $50-$60 region.

The RSI on the D3 chart was well above 70 to reflect intense upward momentum, and the On-Balance Volume (OBV) hasn’t slowed down much. Hence, buying pressure was still dominant on the higher timeframes.

What can the past week’s futures market reveal?

Solana forms a short-term range, but a move past $60 could arrive soon

Source: Hyblock

While the move past $50 showcased strong bullish intent, it was unclear when a breakout could occur. To the north, the $75 and $116 levels were bullish targets. Yet, before that, the $60 region must be broken.

AMBCrypto analyzed the liquidation levels data from Hyblock. The heatmap showed that a large number of liquidations could be triggered upon a SOL move to $62.4-$63.5.


Read Solana’s [SOL] Price Prediction 2023-24


This coincided with the resistance at $59.3. Hence, a move past $63 and subsequent retest could offer a swing buying opportunity.

Until then, a sweep of this liquidity pool could see a Solana reversal to $50, especially if the four-hour or one-day price chart candles have large upper wicks into this area.


Share

Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.