Solana eyes $120: Will THIS be SOL’s price catalyst? – Crypto News Aggregator

• A liquidity run for Bitcoin could spur Solana’s prices higher.
• The local highs at $160 was a strong magnetic zone.

Solana [SOL] was trading in a higher timeframe bear pennant, and analysts believed the prices would consolidate within a tight range over the next 4–6 weeks. This expectation appeared to be playing out.

Once again, the token was headed toward the range lows, but a short-term price bounce could be possible. A Bitcoin [BTC] liquidity run was anticipated in the short term and could aid the SOL bulls.

Solana falls toward the Fibonacci retracement level again

The range formation from $122-$187 was still in play, and the lows of the range were not yet breached. The OBV has been in a steady decline over the past ten days to indicate heavy selling pressure.

Solana had lost 21.7% from the 25th of August but has begun Monday well and was up by 2.58% at press time. Yet, the OBV being near the local lows was a worrying sign that SOL bulls lacked strength.

The RSI was also at 38 on the daily chart to indicate downward momentum was superior.

A revisit to the $120 region would likely present a buying opportunity, but traders and investors have to be careful. A much deeper price correction could be brewing.

Magnetic zones to pull prices higher?

The liquidation levels to the north at $140 and $150 could attract prices higher in the short term, especially if Bitcoin embarks on its liquidity run in the coming hours.

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Realistic or not, here’s SOL’s market cap in BTC’s terms

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However, this was no guarantee, and a small bunch of liquidation levels were also building up at $126.

This meant that Solana could see more volatility and another dip to $126 and possibly lower if the market-wide sentiment continues its bearish trend.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion