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Today, we are excited to share a new article about Solana Price!. Be sure to follow Bitrue's Official Twitter and Telegram to stay updated!
Introduction
Solana (SOL) has seen a remarkable surge, particularly during the festive season, soaring by over 57% in less than a week since its low point on December 19th at $71.78. However, recent market dynamics around the $115 mark have prompted discussions regarding a potential pullback.
Earlier forecasts suggested resistance levels around $96.45 and a possible ceiling between $103 to $106. Nonetheless, the recent bullish momentum has surpassed these expectations, propelling SOL to $115.
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Market Indicators & Analysis
Despite the impressive rally, certain indicators hint at a possible pullback. The 200% Fibonacci extension level acted as resistance, prompting speculation about SOL potentially retracing from this point. While the Relative Strength Index (RSI) on the 12-hour chart sits at 81, indicating a strong upward trend, no bearish divergence has yet surfaced on higher timeframes.
However, a bearish divergence did emerge on the 4-hour charts within the past 24 hours. Yet, it's important to note that such divergences don't necessarily guarantee an immediate bearish reversal.
Potential Scenario & Analysis
The current bullish trend suggests that buyers might anticipate a dip before considering long positions. The On-Balance Volume (OBV) also suggests buyer dominance, further corroborating the bullish sentiment.
Key levels around $96, known for consolidation on December 23rd, and close to the psychological $100 mark, might serve as potential entry points if a downturn occurs before the continuation of the rally.
Market Dynamics & Liquidity Scenario
In the last 48 hours, SOL has formed a short-term range between $109 and $116.8, witnessing extremely high Cumulative Liq Levels Delta. This suggests that many traders have taken long positions, anticipating further gains.
The potential liquidation of these positions during a price decline could offer SOL significant liquidity, potentially fueling its subsequent upward move.
Final Thoughts
While forecasts don't guarantee a precise market direction, potential levels like $97-$100 and $103-$106, marked by significant liquidation levels, might present buying opportunities if SOL retraces to these regions.
The current market sentiment leans toward a bullish outlook, but the potential for a pullback is being closely observed by traders as SOL navigates this key price range.
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