- Solana tested the key support at $153.95 after a sharp 6% decline.
- Statistics point to a potential bullish reversal.
Solana [SOL] faced a pivotal moment as it tested the $153.95 support level. Market participants are closely watching to see if this support holds after a 6% pullback or if bearish pressure will push Solana prices lower.
Source: Trading view
The stochastic RSI is approaching a neutral zone from the overbought area. This adds even more weight to Solana’s current increasing bullish momentum. This gives the green light for further price increases
Solana’s liquidations indicate a further downward trend
According to Coinglass liquidation heatmap data, there is a huge Solana liquidation pool worth $5.96 million, just below the support at $153.95, specifically around the $150 price level.
This increases the chances of breaching the $153.95 support. The huge inventory may tend to cause additional forced selling by trying to trigger some stops, further pushing Solana prices down.
It also has notable liquidation pools above the 153.95 level, which could provide support and even generate upside momentum if SOL bulls gain control.
Source: Coinglass
Solana bulls fight back
AMBCrypto further analyzed the short-to-long ratio data. Although the ratio is leaning towards bears, it indicates some resilience.
While the ratio has declined slightly in the short term, recent swings suggest the bulls are slowly gaining strength. If buyers maintain the momentum, a bullish reversal could be in store.
This tug-of-war between Solana bears and bulls could lead to a consolidation phase before a decisive move is made in either direction.
Source: Coinglass
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If this level is broken, the price is likely to drop to around $150 where there is strong support. But if bulls can make ground here, it could lead to a mild rally and even a retest of higher resistance zones.
The role of liquidation pools and the long/short ratio will be important in determining Solana’s next direction.