- Solana’s momentum is trying to reverse to the upside.
- A continued increase in capital inflows would help a SOL move closer to and above $163.
Solana (SOL) was trading at the key $157 level mentioned in a previous report. A break beyond the $160 resistance could open the way towards $180 before a reversal can occur. However, buying pressure has started to diminish in recent hours.
The longer-term analysis showed the emergence of an Adam and Eve pattern, which again promised bullish results. Should traders prepare for a Solana breakout?
Has Solana formed a smaller lineup?
Source: SOL/USDT on TradingView
The range formation (purple) extended from $122 to $187. Towards the midpoint at $154, another range (red) between $138 and $163 seemed to be forming. In the last few hours of trading, SOL approached the $163 mark and was rejected.
The MACD showed that momentum was starting to turn bullish, but was not quite there yet. The CMF rose to +0.13 on August 24, indicating strong capital inflows, but was back at +0.05.
This suggests a potential retracement, but it could simply be a retest of support at $154 before another push higher.
Does liquidity favor a pullback below $140?
Source: Hyblock
AMBCrypto found that the $135 and $187 regions had a notable number of sell-off levels, but were significantly far from current market prices. This points to them as a potential target, depending on whether $162 or $145 is breached first.
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The $164 area is also an interesting area. Prices are likely to be drawn here in the short term.
The possibility of a breakout beyond the range in the near term depends on market sentiment, which at press time appeared to be trending higher.
Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and represents the opinion of the author only.
