Solana [SOL] has been consolidating around the $100-$105 area over the past two weeks, but this consolidation could be headed for a bullish breakout. Ahead of the Consumer Price Index [CPI] report on Friday, the U.S. futures market saw a bullish reaction.
The S&P 500 is up 1.08% since Thursday’s close, going from 7,591.69 to 7,673 at the time of writing. This kind of price action has seen a favorable outcome for crypto markets, too.
At the time of writing, the past four hours saw $290.7 million in short positions liquidated. Ethereum [ETH] contributed to $155.15 million of these short liquidations after emphatically breaking out past the $2,530 local range high.
The Solana [SOL] price has also been bullish. The month of August saw a green close, after ten months of bearishness, reported AMBCrypto. The rent reduction was also likely to help SOL bulls due to reduced further issuance.
Key Solana price levels traders should watch next
On the daily chart, the swing structure of Solana has shifted bullishly after the $98.41 high was breached during the August rally. This level marked the latest lower high of the previous downtrend.
Its breach meant the Solana price trend was now bullish on the 1-day timeframe. The Fibonacci retracement levels [yellow] showed that a deep retracement to the $79.14-$85.87 golden pocket was possible.
However, so far, the bulls have resolutely defended the $100 psychological level as support.
The next Solana price target was $120. This level was a former support, now resistance, that Solana last traded at in January. It was also the 23.6% extension level.
Traders’ call to action- Buy
The 4-hour structure was bullish, in the same direction as the daily chart. Moreover, the H4 trend has seen a deep retracement to the 78.6% level at $98.3. The reaction from there needs to climb past the local resistance at $107 to keep the uptrend going.
In case of such a breakout, the next price targets would be $110.6, $114.29, and $120.
Meanwhile, a breakdown below $94.95 would shift the H4 Solana price structure bearishly and serve as the first warning of a retracement toward $79-$85.
Final Summary
- Solana has a bullish price structure across multiple timeframes.
- The resolute defense of the $100 support zone meant that a move toward $120 is possible, but the $107 local resistance must be beaten first.
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