Key points:
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SOL’s 5% ETF-driven rally to $160 completely reversed within 24 hours, exposed to persistent technical weaknesses over the lower and higher time frames.
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SOL transactions are close to the critical $144.5–$147.7 supply cluster. A failure below $144 could trigger a decline to $124 or even $95-$100 with little support.
sol(sol) rose to 5% on Monday to reach $160 information Trading on Wednesday in its first exchange-traded fund (ETF). However, this momentum is short-lived because altcoins eliminate all gains in 24 hours and price weaknesses can be seen in multiple time frames.
In the lower time frame, SOL failed to maintain its exponential moving average (EMA) position above the 50-day and 200-day period for more than a month. Despite several bullish structural compositions, including over $148 for pop last week, altcoins have not converted it into a sustainable uptrend.
The $148 level is currently under pressure, and a decline below $137 will confirm a lower low, eliminating the opportunity for a recent bullish continuation. In order to restore SOL’s upward momentum, it successfully regained the demand zone of $145-137, followed by a recovery rate above $160, which is still key.
On the higher frame (HTF), the broader trend remains bearish. In May, Sol failed to violate key resistance at $180 and has been trending downward in the downstream channel since.
While this pattern may lead to a bullish breakout, SOL has remained highly sensitive to Bitcoin’s weaknesses over the past month. And Bitcoin (BTC) Since January 19, cryptocurrency assets have been in a close way, with nearly 50% down by nearly 50%, reflecting relative underperformance.
If the bearish trend persists, the retest of the daily order block between $120 and $95 is still realistic, providing a more attractive long-term entry point. However, over the next few weeks, the daily close to the above $160 daily can be flipped and accelerated bullish reversals, bringing short-term momentum into a higher time frame.
Related: Analysts Increase Opportunity for SOL, XRP and LTC ETF Approval to 95%
Sol Utxo achieves price signal key price levels
SOL’s trading volume on Tuesday was around $148, and its UTXO realized price distribution (URPD), an indicator that tracked the price level of the tokens, providing key insights into the support and resistance zones. The current price is in the 14.3% supply cluster, $144.5 to $147.7, indicating high concentration of holders. This level is critical because buying pressure holds, which can maintain the current price range.
Data from the Glass Festival suggests that maintaining over $144 is crucial. Violation signals below this threshold may be weak, increasing the possibility of retesting of the resupport area.
The range of $100-$97 accounts for 3% of the supply, while $124 supports 1.58%, providing a limited buffer. If the price cannot be held above $144, then the market will see a deeper decline as these levels are thinner and supply may expand volatility.
Resistors emerge at $157, with 5.55% of the supply concentrated, which poses a challenge to upward power. Currently, the dense $144.5-$147.7 cluster emphasizes a solid foundation that investors should defend SOL prices.
Related: After ETF News, Sol Price rally reached $161, but is the rally sustainable?
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
