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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- SOL bulls were not ready to give up their hold on the markets.
- The non-existent retracements may have required buyers to be more aggressive.
Solana [SOL] has risen in an almost vertical line on the price charts since October 19. Whale transactions were reported, which SOL was sent to centralized exchangesbut it did not significantly hinder the rally.
The move above $50 produced bulls further trust in their belief. AMBCryptos Analysis showed that the $75 level was the next major resistance.
A pullback to the $48-$51 region was expected before the next move. Yet it did not happen, which underlined the power of the buyers.
The weekly chart underlined the emphatic position of the bulls
Source: SOL/USDT on TradingView
The one-week chart above shows that the SOL has quickly moved higher since beating the local weekly highs of $25-$27. These highlights were booked earlier this year.
Furthermore, prices also managed to breach the USD 39 and USD 48 levels. Such a huge rally was accompanied by little to no retracement on the one-day and even four-hour charts.
The Chaikin Money Flow (CMF) showed a remarkable flow of capital into the market. On-Balance Volume has moved higher over the past month due to intense demand. The RSI stood at 81, signaling huge upward momentum in recent weeks.
SOL tends to make higher lows even during consolidation periods in the lower time frames. Therefore, instead of waiting for a pullback to the $50 zone, investors can add to their portfolio every time the SOL makes a higher low on the one-hour chart.
Is building liquidity at $53 an achievable goal?
Source: Hyblok
Read Solanas [SOL] Price prediction 2023-24
The heatmap of liquidation levels showed that the $51-$53 region had a significant amount of liquidity. However, that does not guarantee a recurrence. To the north, the $65 zone was also a target for bulls.
Above $75, the $116 and $143 levels were the higher resistance levels on the time frame. It was unclear how far the rally will extend, but until we see a market structure break within a day, a bullish bias remains justified.