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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