The crypto markets are consolidating ahead of the next bullish wave, which is expected to begin shortly. Bitcoin price reaches a crucial support zone, which is expected to provide strong momentum and push prices towards the long-awaited $100,000 milestone. However, the strong presence of bears above $98,000 is slowing down the action, which has affected the other altcoins including Solana, which is speculated to be heading towards the $200 psychological barrier.
Over the past few days, SOL price has lost nearly 15% of its gains, signaling a healthy retracement after hitting new monthly highs. However, the retracement could continue for a while as the bulls can remain passive until the price reaches the liquidity zone between $200 and $210. One of the main reasons behind the pullback and lower chances of a recovery to USD 240 is the formation of a strong wall at USD 235.
Coinglass’ liquidation heatmap suggests over $2.33 billion of longs have been accumulated at $235. As a result, the price continually fails to rise above the range and multiple failed attempts deplete the bullish strength. While selling pressure has increased due to the rally in SOL price, the technical data suggests this could be a reversal in the near term as bulls remain vigilant.
The bulls are doing their best to maintain the rally above the trendline by offering a small push above the 0.78 FIB at $232. However, the MACD has shown a bearish crossover but remains within a positive range, indicating the continuation of the bullish trend ahead. Moreover, the RSI is trading along the rising support and a recovery could confirm a rise in bearish influence.
Considering the on-chain and technical readings, it appears that the price could recover and challenge the central range around $235, which could take away the longs. This could trigger a pullback to the lower FIB at 0.618 around $210. Meanwhile, volume remains within this range, indicating quick bullish action past $240 before another resistance wall emerges. Therefore, the $300 target remains unchanged as the long-term price action remains extremely bullish.
Credit : coinpedia.org
