- Despite the recent gains, the $143 resistance was not breached.
- The steady buying pressure alongside the bridging news gives investors faith.
Increased bridging of liquidity to the Solana [SOL] network from competing chains signaled confidence in the network from users.
The $120 million flow of liquidity over the past month was good news for the bulls. Of this, $41.5 million came from Ethereum [ETH], and the second-largest inflow to SOL was from Arbitrum [ARB], measuring $37.3 million.
This inflow helped the Solana-native memecoins such as POPCAT rally aggressively from the past week’s lows. Solana itself had a bearish 1-day structure, but increased buying pressure meant that this could soon change.
Here’s why $143 remains key
Source: SOL/USDT on TradingView
In a recent analysis, it was pointed out that Solana retained a bearish market structure on the daily chart despite its gains over the past ten days. The lower high at $143 was not yet broken.
However, the move beyond $120 meant that the lower timeframe charts were more strongly bullish.
The OBV has been rising higher over the past ten days, making a new high beyond that of March’s. The OBV was about to challenge the January highs, a sign of strong buying pressure in recent days.
Moreover, SOL’s RSI flipped the neutral 50 level to support, showing bullish momentum on this timeframe.
The $150-$160 region was the short-term price target due to the liquidity clusters overhead. The $140 area, merely 6% above the Solana market price, was also a strong magnetic zone.
To the south, the $123 area was an attractive target as well, as it had nearly $5 billion in liquidations clustered around it.
This lined up with the support level another analysis underlined, marking the $120-$130 region as an accumulation zone.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
