- The Solana buying spree from DeFi Development Corp continued.
- Increased demand and investor confidence would likely see a rally to $176.
Solana [SOL] managed to surpass the previous lower high at $143. In doing so, it made a bullish market structure break, but was unable to push much beyond the $145 supply zone.
A whale’s reduced exposure to Ethereum [ETH] and accumulation of SOL instead added to the confidence behind Solana.
News that the Defi Development Corp (Nasdaq: JNVR), formerly known as Janover, continued its SOL buying spree.
On the 22nd of April, the company added 88,164 SOL to its treasury. On Thursday, it added another 65,305 SOL tokens. This brought the total holdings to 317,273 SOL, valued at $48.2 million, including staking awards.
The market reaction to this institutional investment was positive. The Solana network protocols witnessed a steady growth in total value locked (TVL) and liquidity over the past month, reflecting investor confidence.
The development promised a Solana rally toward $176.
Solana is set to rally toward $180, but…
Source: SOL/USDT on TradingView
The bullish structure break meant that there were few obstacles in the path upward for SOL, from the 1-day chart. The OBV was above the February and March highs to indicate heightened buying pressure in April.
The bullish RSI reinforced the bullish outlook derived from the 1-day price action.
Above $143, the $178 level was the next key resistance zone. The price chart showed no sizable resistance overhead till this level. The SOL liquidation heatmap helped to understand the upcoming obstacles better.
The 1-month liquidation heatmap showed the $155-$160 region was the next immediate liquidity pocket that Solana would be attracted to. The $168 region was another nearby magnetic zone.
Beneath the market price, the liquidation levels clustered around $130 and $120 were also notable, although they were smaller than the ones overhead. The 3-month liquidation heatmap agreed with these findings.
Therefore, the high demand for SOL, combined with the liquidity pockets up above, meant a move to $160 and $168 was likely. The short liquidations triggered here could squeeze prices higher and achieve the $176 target.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
