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 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.
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Bitcoin price shows a tight consolidation on a lower time frame – an ascending parallel channel – that repeats the motif of three larger channels that have developed on higher time frames since the start of 2022.
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