Solana (SOL) has once again respected its 4-month range formation, sparking hopes of a potential bullish breakout. However, a brief price dip may be anticipated in the short term, providing a buying opportunity for investors.

A Bullish Breakout, But Technical Indicators Remain Cautious

Solana’s daily chart has formed a bullish construction breakout, fueled by the recent resurgence of Bitcoin (BTC). Despite this, technical indicators have been hesitant to confirm the uptrend. In the first week of September, SOL plummeted by 13.13% from its peak of $138.13 to $120 on Friday, September 6. Since then, it has rebounded by nearly 15%, recouping all losses made over the previous week.

Mid-Range Resistance: A Lucrative Target

The range formation, which spans from $122 to $187, has a mid-range level at $154.33. This level has been revisited four times since June, making it a crucial target for SOL. The recent bullish market structure has been accompanied by increased buying volume, as evident from the On Balance Volume (OBV) breaking above the previous week’s highs. The Relative Strength Index (RSI) is also on the verge of crossing above 50, indicating encouraging signs of a potential rally.

A Brief Dip May Be on the Horizon

While the mid-range level at $154 is an attractive target, it may be ambitious, especially if Bitcoin falters around the $61k-$62k resistance zone. A BTC rejection could lead to a decline in the altcoin market, including SOL. A brief dip seems possible, given the liquidity pocket at $138-$140 has been swept during the recent price surge. The $142 and $150 levels are the next liquidity targets, but SOL may not reach these levels immediately.

Liquidation Stages Suggest a Price Squeeze

The liquidation stages are skewed bullishly in the short term, with the cumulative liq stages delta extremely positive, indicating a significant imbalance toward long positions. This often leads to a price squeeze in the opposite direction to accumulate liquidity. According to the liquidation stages chart, the $133 and $135 levels are the short-term targets. A retest of this zone may present a buying opportunity, but investors should look out for lower timeframe signs of a bounce.

Key Takeaways

• • Solana’s price may experience a brief dip in the short term, providing a buying opportunity.
  • The mid-range level at $154.33 is a lucrative target, but it may be ambitious if Bitcoin falters.
  • Investors should monitor lower timeframe signs of a bounce before entering a long position.
  • The liquidation stages suggest a price squeeze, which may lead to a brief dip before a potential rally.

Disclaimer

Readers are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this content.