Solana’s recent bullish momentum had the potential to surpass $60, but uncertainty loomed about a southward trend. The analysis suggests a trading range of $50-$60 for the coming month.
Key Takeaways
- Solana aimed to break the $60 resistance set nearly eighteen months ago.
- Expectations of a range formation between $50-$60 over the next month due to liquidity-seeking behavior.
- Positive market sentiment supported by news of USD Coin’s monthly transfer volume exceeding $70 billion.
- Despite recent remarkable gains, there are signs suggesting a possible halt in the current upward trend.
Solana’s Recent Performance and Outlook
Solana, after a year of trading within the $10-$26 range, experienced a breakout, achieving a substantial 148% gain from $27.5 to a peak at $68.2 from October 20th to November 16th.
However, there is speculation that this bullish run might pause in the coming month or two.
Market Analysis and Liquidity Considerations
The three-day chart indicated a strongly bullish market structure with a high RSI (87) and an advancing On-Balance Volume. Despite these positive indicators, a significant liquidity pocket at $50 suggested the possibility of a retracement.
While Solana demonstrated not revisiting every liquidity pocket, there was a notable concentration at $50.
Why #Solana is likely to trade between $50 – $60 in December https://t.co/XoHf5fKdsc
— AMBCrypto (@CryptoAmb) December 1, 2023
To Conclude
Despite the overall bullish outlook for Solana, the analysis suggests a potential trading range of $50-$60 for the upcoming month, influenced by liquidity considerations and the likelihood of liquidations. Traders are advised to be prepared for both a breakout and a rejection.
