Markets
Solana Market Watch – Here are the key price levels to watch this week
- Solana is expected to trade in a range over the next two weeks
- Indicators were bullish, but one chart showed the price could soon drop to $165
Solana [SOL] Bitcoin has seen significant volatility over the past five days. The altcoin rebounded from $167 to $185, making most of those gains in a single day on Sunday, July 21. It has since retraced those gains on the charts.
Its increased volatility could be linked to the Ethereum [ETH] place ETF Approval and trading that began on July 23. Pre-event speculation that SOL would be next led to positive sentiment and gains, although their collective impact didn’t last long.
Bulls may defend range lows
Source: SOL/USDT on TradingView
The RSI was above the neutral level of 50, reflecting bullish sentiment. The OBV has been slowly moving higher in July, and this trend has not stopped despite the recent pullback. The CMF was above +0.05, indicating consistent and notable buying pressure.
These are the signals swing traders can expect if they want to defend the range lows.
Source: Santiment
Development activity has, however, declined since June. The metric’s value of 24.62 was lower than Ethereum and Cardano’s of 44.95. [ADA] 77.83 reading. On the contrary, the weighted sentiment jumped into positive territory.
Combined with the technicals, the metrics suggest that sentiment has improved. An increase in SOL’s social dominance would further help the bullish argument, but at present, it doesn’t seem to be doing much.
Possibility of a short squeeze on Solana
Source: Hydraulic block
The 3-month lookback period of Solana’s liquidation heatmap highlighted $170 and $185 as the next areas of interest. The $165 and $150-155 levels are also potential places where a downtrend could reverse.
They converged with technical support levels. The range formation is expected to continue as the $170 liquidity zone was swept, but indicators and sentiment were positive.
Source: Hydraulic block
Liquidation levels showed that the story could take another turn. Cumulative liquidation levels became increasingly negative, a sign that short positions were becoming more dominant.
Realistic or not, here it is SOL Market Cap in BTC terms
If prices consolidate around the $165-167 area and attract more short sellers, this will lead to more short liquidations. A short-term bullish reversal could compress these short positions, allowing the range lows to be successfully defended.
Overall, traders can anticipate a price rebound around the $165 area, but should also prepare for a range failure. Especially in the case Bitcoin [BTC] is unable to keep $64,000.