Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Solana would break the $60 resistance that emerged almost eighteen months ago.
- A range formation between $50-$60 was possible over the next month or more as prices seek liquidity without a real breakout.
Solana [SOL] has a strong bullish outlook on the price chart. News about the USD currency [USDC] The monthly transfer volume of over $70 billion only reinforced the positive sentiment behind the blockchain platform.
After trading in the $10-$26 range for almost a year, Solana broke through and has already posted extraordinary gains for a large-cap asset.
From October 20 to November 16, SOL managed to gain 148% from $27.5 to the peak of $68.2. However, this run could be halted in the next two months.
Solana was trading at its peak as of May 2022
Source: SOL/USDT on TradingView
The three-day chart above showed that the market structure was strongly bullish, as was the momentum. The RSI was at 87, but no significant decline was yet in sight. On-Balance Volume also continued to climb higher.
This showed that purchasing volume remained high and further gains could be expected. Still, there was a significant amount of $50 liquidity in the South. Not every liquidity pocket needs to be revisited, as Solana has shown over the past six weeks.
However, there was reason to suspect that the market could pivot into the $62-$68 region again. Traders must be prepared for both a breakout and a rejection.
Despite the extremely optimistic outlook, liquidity could pull the SOL market south
Source: Hyblok
AMBCrypto analyzed the heatmap of Hyblock’s liquidation levels. Last month’s data showed that a move to the $62.5 region could trigger a large number of liquidations.
The forced market buying due to short liquidations could potentially push the SOL higher to $70 before a reversal occurs.
Read Solanas [SOL] Price prediction 2023-24
In the South, a large number of liquidations were at $50 and $52.75.
Therefore, if the SOL fails to climb above $68 and turn the $60-$65 zone into support on the one-day or three-day chart, a retracement towards $50-$52 would be likely.