Solana price prepares for an 18% upswing as SOL approaches launching pad

Solana price has been consolidating after its recent uptick in buying pressure. The run-up that followed formed equal highs, leaving quite a bit of liquidity resting above it. Hence, investors can expect market makers to push SOL higher and collect the untapped buy-stops.

Solana price eyes higher high 

Solana price is approaching a demand zone, extending from $157 to $166 after setting equal highs at $188. The double top formed on December 18 is a result of the 27% upswing that started on December 13. 

Since this upswing, SOL price has been on a retracement and is likely to find support as it dips into the said demand zone, which also harbors the December 4 swing low at $163.  A bounce from either of the two barriers is likely to kick-start an ascent to collect liquidity resting above $188.

This run-up could extend beyond this hurdle and make way for the next hurdle at $196, representing an 18% gain. If the bullish momentum persists and Solana price flips this resistance barrier into a support floor, there is a chance SOL might wick above the $204 barrier to collect liquidity resting above another equal high.

In total, SOL has an opportunity to rally 22% from the said demand zone.

SOL/USDT 4-hour chart

While things are looking up for Solana price, failing to stay above the demand zone, extending from $157 to $166, will indicate increased selling pressure or weak bullish momentum. Either way, a breakdown of this area will lead SOL down to test the $153 platform.

A 4-hour candlestick close below this level will create a lower low, invalidating the bullish thesis for Solana price. This development could lead to a retest of the $147 support level.