- Solana saw no additional buying pressure despite an impressive 27.2% recovery in the past six days.
- Despite the shift in momentum, the range is expected to continue.
Solana [SOL] was again at the highest level of the past month. Strong resistance near the $160 region seemed likely to repel bullish efforts.
The news that Solana Network’s NFT sales were booming was an additional positive for users.
It suggested the possibility of a price increase due to increased demand. However, despite the bullish short-term price action in recent days, a retracement could be looming.
The month-long range and the $160 zone
Source: SOL/USDT on TradingView
On the 12-hour chart, Solana’s structure was bullish. It bounced back from the highs at $210 to the 78.6% Fibonacci retracement level at $122 in April.
The lower time frame internal structure was bearish at the time of writing.
The imbalance (white box), also known as the fair value gap, coincided with the highest values in the range (purple). This range extended from $116 to $156. AMBCrypto expected a price rejection through this resistance.
The OBV has not broken the resistance level and has not signaled strong buying pressure. Meanwhile, the RSI reflected last week’s bullish momentum with a reading of 61.
The liquidity cluster could cause volatility in the short term
Hyblock’s liquidation level data showed AMBCrypto that the $160.4 level was an area of interest. It is very likely to attract SOL prices.
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Once reached, the market’s forced buy orders could temporarily push the SOL above $160.
This could cause volatility before prices fall back into 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 advice, investment advice, trading advice or any other form of advice and is solely the opinion of the author.