Coin Realm reports:
The Solana market has a bearish inclination on the daily timeframe, but it may maintain its long-term bullish outlook. The defense of Fibonacci levels, coupled with the pursuit of liquidity, suggests that an upward trend could be initiated once again.
Solana [SOL] has fallen by 2.56% over the past seven days. According to data from CoinMarketCap, this ranks as the third-best performance among the top ten market coins (excluding stablecoins). Here, the optimistic belief may stem from hopes for the SOL ETF and its potential after the next U.S. election.
The argument is that SOL has an advantage over other parts of the altcoin market, most of which have already lost close to double-digit percentages. In fact, a recent report highlighted that the daily transactions processed by Solana are several times that of the Ethereum network.
Fibonacci Levels Show Resilience
A set of Fibonacci retracement levels (in yellow) was drawn based on the rebound from $98.48 to $210.18 in February and March. The 78.6% level has been retested for the fourth time since mid-April and has been defended.
The OBV has been slowly trending south since March, while the daily RSI has remained below the neutral 50 since the beginning of June. Together, they emphasize that selling pressure and bearish momentum have taken the upper hand.
The DMI also shows a strong downward trend in progress, with both the ADX (in yellow) and the -DI (in red) above the crucial 20 mark.
The spot CVD began to recover in the last week of June, but this progress was lost in the past week’s sell-off. Open interest contracts were also hit. In fact, in the past few hours, OI has shown a slight rebound along with the price—indicating that speculators are somewhat willing to go long, but not fully convinced.
In the hours before publication, short liquidations surged, showing $6.34 million of short positions liquidated at $137. This indicates that the short squeeze was successful in the lower time frames, with the next resistance zone around $140-$143.
Liquidation Data Provides Clues for the Next Major Price Trend
On July 2nd, Solana visited a liquidity cluster at $152, shortly after which it reversed its bullish trajectory. This is an example of how prices can rise against the trend in lower time frames to eliminate liquidity pockets before resuming the original direction.
A large amount of liquidity has drawn their prices. The next notable levels appear to be $164 and then $175.
In the short term, Solana’s price rebound may have lost momentum. Indeed, analysis by AMBCrypto shows that the cumulative liq level delta is positive, meaning that the number of long liquidations slightly exceeds that of short liquidations.
Read Solana’s [SOL] Price Prediction for 2024-25
In turn, the short squeeze may come to an end. This idea reinforces the possibility that SOL may retreat south from the $140-$143 range. Overall, SOL may face rejection at $140 to $143 and consolidate around $135 in the following days.
In the coming weeks, Bitcoin (BTC) breaking through $60,000 could fill the bulls with confidence, pushing the price up to $164 and $175.
