Solana (SOL) Eyes $180 Target Amid Bullish Market Structure
The Key Points at a Glance
Solana (SOL) is facing a critical phase that could greatly affect its potential to reach the target of $180. Recent analyses and market data suggest that the short-term trend reversal depends on overcoming certain resistances and maintaining market momentum. Here’s a detailed look at the factors that could influence SOL’s path.
Market Structure and Liquidity as Key Factors
Despite some past challenges, Solana has maintained a long-term bullish market structure. The recent recovery in February and March highlights SOL’s potential to continue to perform positively. However, the price action in April shows a bearish tendency, with a series of lower highs and lows. This is confirmed by the RSI indicator, which remained below the neutral 50 mark for most of April, indicating a bearish swing.
Another important aspect is the liquidity near the current price levels. A significant liquidity pool was identified in the range of $143 to $145, which in recent days led to a price reversal from $157 to $145 to collect this liquidity. The next important zone is at $160, where a high concentration of liquidation levels is expected.
Challenges and Opportunities
The current challenge for Solana is to overcome the fair value gap in the $160 range, which currently serves as resistance. The Fibonacci retracement levels at $141.15 and $122.38 could be tested in the coming weeks before the bulls can reverse the trend.
However, recent NFT transactions on Solana, surpassing Ethereum and Polygon, as well as a 33.3% increase in revenue, show that interest and activity in the network remain strong. This could help Solana build the necessary momentum to overcome the resistances.
Our Assessment
Solana is at a critical point where the ability to overcome short-term resistances and leverage market momentum will be crucial to reach the $180 target. The current market indicators and liquidity zones present both challenges and opportunities. Overcoming the $165 level could pave the way for a move towards $180, while failure at this hurdle could lead to further tests of the support levels. Overall, Solana remains an exciting project with a lot of potential, but as always, much depends on the overall market sentiment and the project’s ability to master its technical challenges.
Sources: AMBCrypto
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