Solana Sees Bullish Signs as Price Consolidation Ends
After two weeks of consolidation around the $100-$105 area, Solana's price has shown signs of a potential bullish breakout. The S&P 500 futures market saw a 1.08% increase since Thursday's close, which could be favorable for crypto markets as well.
At the time of writing, over $290 million in short positions had been liquidated, with Ethereum contributing significantly to this amount after breaking out past its local high at $2,530. Solana has also seen a bullish trend, with August marking the first green close in ten months.
The rent reduction on Solana is likely to help bulls due to reduced further issuance. However, if the price breaks below $94.95, it could shift the H4 structure bearishly and lead to a retracement toward $79-$85.
For now, the focus remains on the next key levels. The daily chart shows that Solana's trend is bullish after breaching the $98.41 high during the August rally. The 1-day timeframe indicates a possible deep retracement to the golden pocket at $79.14-$85.87.
The bulls have defended the $100 psychological level as support, and the next target is $120, which was a former support now resistance last seen in January. To reach this target, Solana needs to climb past the local resistance at $107. A breakout above $107 would allow for further price targets of $110.6, $114.29, and $120.