Is Solana hinting at a sustained rally?

Journalist

Posted: November 14, 2023

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• SOL bulls were not ready to relinquish their grip on the markets.
• The non-existent retracements meant that buyers might have to be more aggressive. 

Solana [SOL] has advanced up the price charts in an almost vertical line since the 19th of October. Whale transactions were reported, with SOL being sent to centralized exchanges, but it didn’t hamper the rally significantly.

The move above $50 gave bulls further confidence in their conviction. AMBCrypto’s analysis noted that the $75 level was the next major resistance.

A pullback to the $48-$51 region before the next move was anticipated. Yet it did not materialize, which highlighted the buyers’ strength.

The weekly chart underlined the bulls’ emphatic position

Source: SOL/USDT on TradingView

The one-week chart above noted that SOL has rapidly marched higher since beating the local weekly highs at $25-$27. These highs were posted earlier this year.

Moreover, the prices managed to breach the $39 and $48 levels as well. 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 notable capital flow into the market. The On-Balance Volume has trended higher over the past month to reflect intense demand. The RSI was at 81 to signal enormous upward momentum in recent weeks.

SOL has tended to form higher lows even during periods of consolidation in the lower timeframes. Therefore, instead of waiting for a pullback to the $50 zone, investors can look to add to their bags each time SOL forms a higher low on the one-hour chart.

Is the build-up of liquidity at $53 a viable target?

Source: Hyblock

Read Solana’s [SOL] Price Prediction 2023-24

The liquidation levels heatmap showed that the $51-$53 region possessed a considerable chunk of liquidity. However, that does not guarantee a revisit. To the north, the $65 zone was also a target for bulls.

Above $75, the $116 and $143 levels were the higher timeframe resistance levels. It was unclear how far the rally will reach, but until we see a market structure break in the one-day timeframe, a bullish bias remains justified.