- Solana’s ascent to $180 could be delayed by technical resistance at key levels and mixed market indicators, despite recent bullish momentum.
- Short-term volatility and slow spot demand might hinder immediate progress, although the long-term outlook remains positive.
Solana [SOL] has been making significant strides in the cryptocurrency market, showing promising signs of a bullish trend. However, there are several factors that could delay its rise to $180. Let’s delve into the key points affecting Solana’s price movement and the potential challenges ahead.
Choppy Trading Ahead
In recent trading sessions, Solana has experienced choppy trading patterns. Despite a bullish breakout past a key level within the last 24 hours, SOL remains beneath a formidable resistance zone. This choppy trading indicates that SOL could face volatility in the short term, affecting its upward momentum.
Technical Indicators and Resistance Levels
The technical indicators paint a mixed picture for Solana. While they show bullish strength, the trading volume hasn’t been notably high, even with steady buying pressure. This discrepancy between technical indicators and trading volume suggests that the bullish trend might not be as robust as it appears.
The $154 level has proven to be a crucial point for Solana. It serves as both the mid-point of a long-term range and the 50% retracement level based on SOL’s rally in March. Although this level has been breached thrice since August, previous rallies have been halted under the $162 resistance. This pattern suggests that the current move might face similar resistance, with a sizable liquidity pool around the $162-$165 zone potentially causing a bearish reversal.
Momentum and Volume Analysis
Despite the bullish momentum, the Money Flow Index (MFI) has not climbed past 72, even as the price reached new local highs. This could be an early warning of a price reversal. The Choppiness Index, which measures the market’s trend strength, burst past 61.8 recently as Solana struggled to crack the $154 level. While it has begun to drop, indicating that a strong trend is not yet in progress.
Futures Market and Spot Demand
The Open Interest in Solana’s futures market remains near the month’s highs, indicating increased activity and generally bullish short-term sentiment. Additionally, the spot CVD (Cumulative Volume Delta) halted its downtrend from mid-September and has slowly climbed higher over the past week. However, the slow spot demand suggests that a breakout past $162 could take more time than anticipated.
Potential Price Targets and Bearish Signals
If Solana experiences a minor price dip, potential targets would be $155 and $152. A sustained drop below $146 would signal short-term bearishness. Despite these potential dips, the Solana price prediction remains positive on higher timeframes, such as the weekly chart.
Solana’s price prediction indicates a potential rise to $180, but this ascent could be delayed by several factors. The combination of technical resistance, choppy trading patterns, and mixed market indicators suggests that while the long-term outlook remains bullish, investors should be prepared for short-term volatility. Keeping an eye on key levels such as $154 and $162, along with market indicators like the MFI and Choppiness Index, will be crucial in navigating Solana’s price movements in the coming days.
