- Solana is defending the 78.6% retracement level at $122 since April, indicating long-term bullish market sentiment.
- Technical analysis shows potential for SOL to break $155 resistance, with additional targets at $170 and $187.
Solana (SOL) has shown promising signs of an uptrend, with potential to break $155 resistance and target $170 in the near term. This momentum comes as the broader cryptocurrency market, including Bitcoin (BTC), exhibits strength with BTC bouncing above $60,000.
Factors supporting Solana’s potential upside
Technical indicators: Solana has been defending the 78.6% retracement level at $122 since April, indicating long-term bullish sentiment. Recent gains over the past few days suggest that SOL is on the verge of forming a bullish market structure.
Key resistance levels: The immediate challenge for Solana lies at the $155 mark. A daily close above this figure could signal the start of a bullish phase. Observers and traders are watching for the formation of a higher low after this breakout, which would confirm a change in trend.
Market Momentum: The Relative Strength Index (RSI) for SOL has risen to 57, reflecting sustained bullish momentum. In addition, on-balance volume (OBV) has increased over the past three weeks, further underscoring the growing strength of the bulls.
Open interest and settlement levels: Open interest in Solana has increased significantly, from $1.69 billion to $2.01 billion, indicating a strong inflow of speculative interest.
The key liquidity zones to watch are at $155, $165, $165, $177 and $185. The $165-$168 range, in particular, contains a substantial liquidity cluster that could catalyze notable short liquidations.
Implications of network evolution
The upcoming mainnet launch of Firedancer, a new standalone client for the Solana network, has also bolstered optimism. Scheduled for the fourth quarter of 2024, this milestone could inject additional momentum into Solana’s market activity.
Outlook and forecasts
Solana’ s movesare closely tied not only to its internal developments, but also to the broader market involving major cryptocurrencies such as Bitcoin. Should Bitcoin continue its ascent towards $73,000, it could provide additional tailwinds for SOL’s push beyond the $170 mark, potentially reaching $185.
