Solana Bulls Target $240 After Rebounding from $210

Solana Bounces 4% from Support Level

On the daily chart, Solana has displayed a bearish market structure, particularly after the price set a series of lower highs over the past two weeks. Despite this, the bulls have successfully defended the critical $210 support over the last two days, leading to a 4% bounce. However, the overall market sentiment remains uncertain.

Several technical indicators are now showing signs of bearish momentum. For instance:

• The Chaikin Money Flow (CMF) has dropped below -0.05, signaling significant capital outflows from the market.
• The Awesome Oscillator has formed a bearish crossover, indicating the build-up of downward momentum.

Potential Price Action and Key Support Levels

While Solana’s bulls are expected to defend the $210 support level, there is a high likelihood of increased volatility in the short term. If SOL closes a daily session below the $202-$203 range, it would strongly indicate that further losses are likely. In such a scenario, the price could potentially drop to the next key support around $180.

Volatility Expected Between $210 and $230

Looking at the liquidation map, there is a significant concentration of high-leverage long positions between $210.5 and $218, which could cause prices to be drawn to this liquidity zone. This suggests that the $210-$218 region will likely be revisited in the near future. Additionally, the $220-$230 range also holds a sizable amount of cumulative leverage, which could impact price action if Solana approaches this zone.

As a result, it is anticipated that Solana will experience consolidation between the $210 and $230 levels over the coming days. A further uptrend remains a possibility, but this is contingent on Bitcoin’s performance. If Bitcoin falls below key support levels such as $94k and $90.5k, the chances of a Solana rally would significantly decrease.

Conclusion: What to Expect from Solana in the Short Term

Solana is currently caught in a range-bound market, with volatility expected between the $210 and $230 price levels. The bears are gaining strength, as indicated by the bearish technical indicators, but the bulls are holding strong at the $210 support. Traders should keep an eye on the $202-$203 range for signs of further weakness. If Bitcoin’s price continues to be indecisive or drops below critical levels, Solana’s price may face additional downward pressure.

In the short term, consolidation is expected to dominate, with the potential for a price breakout or breakdown depending on broader market conditions. Traders should be cautious and monitor the key support and resistance levels closely in order to navigate potential volatility in the coming days.