- Solana (SOL) has experienced an impressive 27.2% increase in the past six days, but it has not seen added buying pressure.
- Despite the shift in momentum, the range is expected to persist.
- News of booming NFT sales on the Solana network suggests a possible price appreciation due to increased demand.
Solana (SOL) is once again at the range highs of the past month, with resistance near the $160 region likely to rebuff bullish efforts. Will SOL reach $210 next?
The month-long range and the $160 zone
On the 12-hour chart, Solana’s structure is bullish. It retraced from the highs at $210 to the 78.6% Fibonacci retracement level at $122 in April. However, the internal, lower timeframe structure is bearish at press time. The fair value gap, also known as the imbalance, coincides with the range highs. This range extends from $116 to $156. A price rejection from this resistance is expected.
The cluster of liquidity could cause short-term volatility
The liquidation levels data from Hyblock shows that the $160.4 level is an area of interest. It is very likely to attract SOL prices to it. Once reached, the forced market buy orders could momentarily sweep SOL higher than $160. This could cause volatility before the prices fall back within the range. Alternatively, a move above the $165-$170 region would be a sign that the bulls were dominant.
Conclusion
Despite Solana’s impressive 27.2% bounce in the past six days, the cryptocurrency has not seen added buying pressure. While the short-term bullish price action suggests a possible price appreciation, a retracement could be around the corner. Investors should keep a close eye on the $160.4 level, as this could cause short-term volatility. A move above the $165-$170 region, however, would signal that the bulls are dominant.
