Solana Outshines Ethereum in NFT Growth, Eyes $180 Target

In A Nutshell

Solana (SOL) is demonstrating a long-term bullish market structure despite its recent underwhelming price action and a bearish bias observed among traders. A notable report from AMBCrypto highlighted that Solana has managed to outperform Ethereum (ETH) and Polygon (MATIC) in 7-day NFT transactions and saw a 33.3% increase in revenue. However, challenges such as decreased decentralized exchange volumes and a reducing total value locked (TVL) were noted. A critical observation from the liquidation heatmap indicates that SOL’s path to a $180 target rests on overcoming significant liquidity pools and resistance levels.

The Present State of Solana (SOL)

Solana’s current market situation reflects a bearish short-term trend, evident from the formation of lower highs and lows in April. The Relative Strength Index (RSI) readings linger below the neutral 50, indicating bearish momentum, while the On-Balance Volume (OBV) showcases a downtrend. A specific area of concern is the fair value gap in the $160 zone, which previously acted as support and now serves as resistance.

Key Resistance and Liquidity Levels to Watch

The liquidation heatmap reveals a significant liquidity pool between $143-$145, which Solana recently tapped into by reversing from $157 to $145. The $160 level emerges as a crucial resistance, housing a concentration of liquidation levels that could potentially attract SOL prices in the short term. However, surpassing the $165 level could set $180 as the next target for Solana, contingent upon the asset’s ability to maintain momentum and break through these critical resistance points.

Our Take

Solana’s journey towards the $180 target is fraught with challenges, particularly in overcoming the bearish short-term trend and resistance at crucial liquidity levels. While the long-term outlook remains bullish, bolstered by Solana’s recent performance in NFT transactions and revenue growth, immediate hurdles in the form of decreased exchange volumes and TVL, alongside critical resistance zones, need addressing. Investors and traders should closely monitor these liquidity and resistance levels as indicators of SOL’s potential to reverse the current bearish trend and embark on a bullish trajectory.

In conclusion, while Solana showcases promising long-term prospects, the path to reaching the $180 target is not straightforward. The ability to navigate through the immediate liquidity pools and resistance levels will be pivotal in determining whether SOL can achieve this ambitious price point.