• Solana price seems to be hovering inside a consolidation with no signs of a breakout.
  • Investors can expect a dip to $31.66 or $24.52 levels in the near future as liquidity below these levels remains untapped.
  • A daily candlestick close below $24.52 without recovery will invalidate the bullish thesis for SOL.

Solana price faces a choice that could either propel it to highs seen in early May or push it into boring sideways consolidation. Investors need to pay close attention to the liquidity pools mentioned below.

Solana price at crossroads

Solana price has been producing higher lows since its bottom at $25.71 on June 15. Since this local bottom, SOL has produced four higher highs as it rallied 84% at one point. Currently, SOL trades at $39.

There are liquidity pools of uncollected stop-loss present below $31.66, and the swing lows formed around $26 during the bottom formation in June 2022. From a market makers’ perspective, these levels are likely to be swept and, when it happens, will trigger a run-up.

Likewise, similar liquidity pools are present above $47.43 and higher.

Therefore, if investors are looking to buy the dips on Solana price, the best levels would be $31 to $25. Assuming the sell-stops are swept first, the potential returns would range anywhere from 40% to 90% with SOL reaching $45 to $60 levels.

SOL/USDT 1-day chart

SOL/USDT 1-day chart

While the upside narrative looks appealing, investors need to understand that the directional bias the cryptocurrency market is in shambles. If Solana price moves to collect the liquidity present above at $47, then a lack of upside objective could leave SOL consolidating for a long time.

However, if Solana price produces a lower low below the $24.52 support level, it will flip this barrier into a hurdle and invalidate the bullish thesis for SOL.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana congestion troubles could end soon, testnet v1.18.11 release arrives

Solana network is plagued by failed transactions caused by congestion issues on the blockchain. The recent rise in popularity of Solana-based meme coins has resulted in a massive increase in user activity on the SOL blockchain, which has exacerbated the issue. 

More Solana News

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Bitcoin meme coin PUPS hits new all-time high as Ordinals tokens see massive spike

Pups, a BTC-based meme coin, hit a new all-time high of $84.08 early on Friday. The Ordinals Inscription project, which was launched nearly a year ago, sees gains from anticipation surrounding Bitcoin halving.

More Bitcoin News

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

XRP price tests $0.60 support as AMM makes comeback on XRPLedger

Ripple sees AMM back in action on the XRPLedger mainnet after amendment on Friday. XRP price tests $0.60 support, price ranges below $0.62 on April 12. Ripple CLO shared the Second Circuit Court of Appeals refusal to reconsider their decision, considered a loss for the SEC. 

More Ripple News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki, author of Rich Dad Poor Dad, is popular for his investment advice and pro-Bitcoin stance on social media platform X. Early on Friday, Kiyosaki shared his thoughts on Bitcoin ETFs and advocated holding the asset directly, instead of a “Wall Street” version. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. While Bitcoin’s long-term outlook remains positive, bouts of volatility could bring prices down ahead of the upcoming halving.

Read full analysis

BTC

ETH

XRP