Journalist
Posted:
- Solana maintained its bullish bias despite falling below $107.9.
- This dip changed the market structure, but buying pressure remained dominant.
Solana [SOL] has been going on in a remarkable way since the end of September. After breaking the $80 resistance zone on December 20, the bulls wasted no time in pushing the SOL past $100. On December 25, it reached $126.
The YTD return was over 120% as SOL was under pressure this time last year after the FTX collapse. On-chain activity was strong, with AMBCrypto noting that network growth reached a monthly peak in December.
The difference in fair value caused SOL prices to fall
Source: SOL/USDT on TradingView
On December 23, Solana prices rose from $95.28 to $110. This northward move continued over the following days, leaving SOL without time to fill the fair value gap it left on the 12-hour chart. This gap extended from $98.22 to $107.3.
The 50% level of this gap was $102.76 and is a technical target for the current dip that SOL is in. Below $100, the $93-$98 was also a good argument to buy SOL. Before the big breakout, it was a lower timeframe consolidation zone.
SOL’s market structure has turned bearish on the 12-hour chart. The RSI continued to rise above the neutral 50, indicating that buyers were in control.
The OBV also showed that the recent losses were not the result of intense selling pressure. Instead, it was likely that SOL could climb higher again.
The $100 level was not just a level of psychological support
Source: Hyblok
AMBCrypto’s analysis of the liquidation heat map showed that the $100-$103 region was crucial. This area contained a large number of estimated liquidation levels.
Therefore, the SOL could drop just below $100 to gather this liquidity before climbing higher.
Is your portfolio green? Check out the SOL profit calculator
Below $98.2, the next area of interest was $90.3, evidenced by the significant number of liquidation levels. A drop below $90 could see SOL revisit the $70 support area.
On the other hand, a successful defense of the $100 area could see the SOL move towards $143, the next long-term resistance level.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
