Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Solana price halts near $115: Do predictions see a pullback?

2min Read

In the past 48 hours, SOL formed a short-term range that extended from $109 to $116.8.

Solana price halts near $115: Do predictions see a pullback?

Share this article

  • SOL showed no strong signs of exhaustion on the higher timeframe charts
  • There were attractive pockets of liquidity around the $100 mark that Solana could retest

Solana [SOL] continued to rally during the festive season, giving holders an additional reason to celebrate. Measured from the low on the 19th of December at $71.78, SOL has gained just over 57% in under six days.

AMBCrypto noted in an earlier analysis that the $96.45 resistance would be a good place to book profits, and that $103-$106 could serve as resistance.

SOL bulls have blown these expectations out of the water in the past week by driving a rally to $115.

The psychological $100 could be important again

Solana halts near $115- is a pullback due?

Source: SOL/USDT on TradingView

The 200% Fibonacci extension level was tested as resistance in the past 24 hours. It was unclear if SOL would be forced to pull back from here.

The RSI on the 12-hour chart is at 81 but has not formed a bearish divergence on the 12-hour or one-day timeframes yet.

On the other hand, the 4-hour charts saw such a divergence develop in the past 24 hours, but it does not guarantee a bearish reversal in the next few days.

Since the trend of SOL was firmly bullish, buyers can wait for a dip before entering long positions. The OBV was also trending upward to indicate buyers were in control.

The $96 region, marked in cyan, served as a lower timeframe consolidation zone on the 23rd of December. It was also close to the $100 psychological level. Hence, a dip into this area before a continuation of the rally was a possibility.

The bulls could be overextended

Solana halts near $115- is a pullback due?

Source: Hyblock

In the past 48 hours, SOL has formed a short-term range that extended from $109 to $116.8. During this time, the Cumulative Liq Levels Delta was extremely high.

The inference is that bulls anticipated more gains and a majority of the market was in long positions.

This meant that triggering their liquidations during a price dip could provide SOL with a lot of liquidity to power its next move upward.

AMBCrypto’s analysis suggested that the $103-$106 area was important, on both the technical chart and from the Liq Levels perspective.


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


It has multiple long positions whose liquidations are estimated to amount to $60M or more. Similarly, the $97-$100 was also estimated to have multiple $20M+ liquidation levels.

Hence, a dip into these regions, while not guaranteed, could provide a buying opportunity.

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

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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.