Analysis
Is $75 the next target for Solana bulls?
The 100% Fibonacci extension level was tested in recent hours. Therefore, it could be a good idea for bulls to book profits on their positions
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Solana bulls have performed extremely well after breaking past the crucial $25-$27 resistance zone in October.
- The strength of the buyers even when SOL traded at $50 meant the rally could extend toward $80 later this year.
Solana [SOL] has rallied 146% in just under a month to reach $51.93, and the move has not lost strength yet. Technical analysis by AMBCrypto dated 2nd November highlighted the $44 and $51.5 levels of interest on the higher timeframes.
Such a rally has materialized as anticipated. Now it appeared that the $50 psychological resistance level could be broken by the bullish impetus. Here’s how traders can navigate the markets over the next week.
The 100% Fibonacci extension level was tested but the rally wasn’t over yet
Source: SOL/USDT on TradingView
The three-day price chart showed SOL registered a series of green candles over the past month from the $20.93 support level. The $39.18, $48.38, and $75.35 levels represented highs on the weekly chart. Consequently, they are important resistance levels.
The SOL bulls have already breached two of them with relative ease. The move above the $25.43 mark was instrumental as it highlighted a break in market structure. The sellers were unable to force a retracement over the past four weeks, although the retest of the $39.18 level as support was noteworthy.
The RSI was at 90 and the market structure showed SOL has gone vertical since the structure break at $25.4. The On-Balance Volume (OBV) shot higher to denote increased buying volume, and the Chaikin Money Flow (CMF) also signaled a large capital influx to the market.
Will the bulls continue their march above $50?
Source: Hyblock
The 100% Fibonacci extension level was tested in recent hours. Therefore, it could be a good idea for bulls to book profits on their positions. However, a large retracement might not occur. The $44 and $39 regions were likely to be hefty support zones where SOL could resume its rally from, in the event of a pullback.
Read Solana’s [SOL] Price Prediction 2023-24
The Hyblock liquidation levels heatmap hinted where a pullback could go. It showed that a good chunk of liquidations could be triggered upon a drop to $41.7, $39.2, and $37.36.
On the other hand, a move above $51 and a retest of the $48-$51 zone would likely be followed by a rally to $75.
