Between the 19th and 21st of October, Solana (SOL) experienced a significant upswing of over 30%. This rapid growth in value led to the cryptocurrency retesting the critical $30 level. However, the upward trend seemed to lose steam once it hit this point, raising questions about the sustainability of SOL’s recent gains.
Analysis of SOL’s Price Action
Despite a slight slowdown after reaching the $30 level, there is still potential for SOL’s value to climb. Analysts at AMBCrypto suggest that the cryptocurrency could rise to $32, albeit at a slower rate than the aggressive surge witnessed in July. This prediction is backed by the current hesitation in price action around the $30 level.
Looking at the 12-hour chart, two key levels could extend the pullback. The first is a confluence of liquidity/price imbalance at $27.3 – $28.6 and a H12 bearish order block at $26.14 – $27.38. The second level is a breaker block of $24.0 and $25.3, just below the first level of interest. However, if Bitcoin doesn’t significantly retrace in the mid-term, the confluence at the first level could ease the pullback.
Potential Future Movements for SOL
If SOL’s recovery continues, the bullish targets are projected at $30, $32, $33.8, and $37.4. On the flip side, if sellers gain the upper hand in the coming days, SOL could depreciate to the breaker block at $24.
Despite some downturns on key indicators, the RSI, OBV, and CMF remain positive, suggesting that SOL’s buying pressure, Spot market demand, and capital inflows are still substantial.
Liquidation Levels Indicate Bearish Bias
The Cumulative Liq Levels Delta (CLLD) is currently positive, which indicates a bearish bias. This metric tracks long versus short liquidation over time. A positive reading shows that more long positions are being liquidated, suggesting a bearish inclination.
The recent higher liquidation levels are at $28.7, $27.5, and $27.0. As of press time, the liquidity at $28.7 has been hit, and $27.5 could be next before a potential reversal to the upside.
It’s worth noting that the $27.5 level falls within the confluence of liquidity on the chart and an invalidated roadblock, which could attract support.
For those interested in tracking SOL’s performance and other cryptocurrencies, the cryptoview.io application provides a comprehensive overview of the market.
Start now using our tools for free.
