Recently, Liquid Collective, in collaboration with major names like Coinbase, Kraken, Galaxy, Anchorage Digital, and Fireblocks, launched a liquidation staking token called Liquid Staked SOL (LsSOL) on the Solana network. This move aims to meet the growing interest from institutional investors in the Solana ecosystem, especially as many expect SOL-based ETFs to be approved by US regulators soon.
So, can the increasing demand from professional investors help SOL break through important resistance levels and continue to rise? Let's analyze the technical chart to find the answer.
SOL Price Prediction
SOL has completed an inverted head and shoulders pattern - a technical signal that often indicates a bullish trend reversal. On Thursday, the price broke through the important resistance level at $159, confirming the pattern. Afterward, SOL returned to test this zone (retest), and the buy-side successfully maintained the price above this level, indicating strong buying pressure.
The 20-day EMA has started to slope upward, showing a forming upward trend. Simultaneously, the RSI is approaching the overbought zone, implying that buying pressure is dominant and the path of least resistance may be upward.
If the buy-side can maintain the price above $168, the SOL/USDT pair is likely to target the strong resistance zone at $185. However, this could be a level that sellers will defend fiercely, as breaking it could lead the price to continue climbing to $210.
However, this positive scenario will be invalidated in the short term if the price reverses and breaks below the moving averages. In that case, SOL could fall to the support zone of $144, and if the downward momentum continues, $137 would be the next target.
The buy-side successfully prevented sellers from pulling the price below $159, indicating that this level has now become a strong support zone. Not stopping there, they further consolidated their advantage by pushing the price above $169, opening the possibility of approaching the important resistance zone between $180 and $185.
Pressure is increasing on the bearish side, and they have little time if they want to reverse the trend. They will need to quickly push the price below $169 to create a "price trap" for investors who bought too early. If this happens, the price could return to $159. However, the trend will strongly lean towards the bearish side if there's a decisive break below $155. At that point, the downward momentum could significantly intensify.
This article does not contain investment advice or suggestions. All investment and trading activities carry risks, and readers should conduct their own research when making decisions.
