Key Takeaways
- Solana was not the only large-cap crypto asset witnessing a sizable price drop. However, Solana could be good for buying right now. Should you wait for a bullish price reaction, or bid SOL immediately?
Solana [SOL] reached a five-month high on Tuesday, the 22nd of July.
It climbed to a high of $206.3 but has since retraced 11.2% to trade at $183.3 at the time of writing. This pullback was not limited to Solana but spread across the altcoin market.
The altcoin market cap, of which Ethereum [ETH] was a sizable portion, has shed 7.93% since Tuesday’s high. Meanwhile, Bitcoin [BTC] has been relatively steady, with a 2.1% decline.
Can Solana begin to recover soon, or will the pullback send prices reeling further down?
The Solana price prediction for the coming days and weeks
Source: SOL/USDT on TradingView
The price action on the 1-day chart was strongly bullish. The price had broken out past the high at $187.7 from May. The bearish order block set in May appeared to have been flipped to a bullish one.
Marked in cyan, this demand zone from $174 to $183 is expected to act as support.
Additionally, the fair value gap left behind on the 21st of July, has also been filled. These two had some overlap on the price chart, reinforcing the importance of this area.
The technical indicators also leaned bullish. The Supertrend indicator signaled “buy”, and the CMF was well above +0.05.
Its reading of +0.28 conveyed intense buying pressure in recent days. The RSI had dropped from 82.6 to 59.4 in a couple of days, but the momentum remained bullish.
Source: CoinGlass
The 2-week liquidation heatmap showed that the $183 area was a key liquidity cluster. The price action in recent hours saw this area swept, which was an early sign that Solana might be ready for a trend reversal.
However, there was another pocket of liquidity in the $168 to $173 area. A move below $181.5 would signal a deeper short-term dip to $168 was likely over the next few days.
In the next few weeks, the Solana price prediction is strongly bullish. The $220 and $260 resistance levels are the next targets. Rising demand and bullish conviction on social media could fuel the next rally.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion