- Solana broke the bearish market structure in late January.
- Solana’s rise in February could continue to $125.
Solana (SOL) has seen a strong market structure, rising nearly 10% over the past 10 days. It has also consistently performed as the best layer 1 (L1) blockchain.
A recent AMBCrypto report highlighted that Solana outperforms its competitors Ethereum (ETH) and Tron on several key metrics.
This strong performance was also reflected in the price chart. Despite a weak January, when SOL established a bearish structure and fell to $79, buyers were able to force a recovery. How far can this rally go?
Steady gains followed the collapse of an optimistic market structure.
On January 30, SOL surged past its recent low of $103.6. This has resulted in a bullish reversal of the market structure (highlighted in green). Since then, the bulls have established the $93-$95 area as a firm support zone.
Source: SOL/USDT on TradingView
The higher low to note at press time was $103.4. A drop below this will reverse the structure to bearish once again. However, technical indicators suggested further upside is possible.
OBV has turned the 2024 local high, which had been a resistance level over the past two months, into a support level. This indicates an increase in purchasing volume over the past two weeks. RSI also hit 56, reflecting the bullish momentum on the 12-hour chart.
Together they strengthened the consequences of price action. To the north, the $126 level was the next target.
Liquidation levels suggest that strength could push the price higher.
Source: Hiblock
AMBCrypto’s analysis of last month’s liquidation levels shows that there is significant volume in the $120 region that could drive the price. On the other hand, the liquidation level of $105 to $107 was similar.
Is your portfolio green? Check out the Solana Profit Calculator
Both are estimated to be worth $1.2 billion to $1.5 billion. These two areas of interest can be tested before the price reverses into another area of liquidity.
Therefore, a move to the $120-$125 area would be a selling opportunity, and a drop to the $105 area would be a buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.