Solana is expected to trade within a specific range over the next two weeks. While indicators are bullish, one chart suggests a potential dip to $165.
Over the past five days, Solana [SOL] experienced significant volatility, bouncing from $167 to $185, with most gains occurring on July 21. However, these gains have since been retraced.
This volatility may be linked to the Ethereum [ETH] spot ETF approval and trading that began on July 23. Speculation that SOL would follow led to positive sentiment and gains, though these were short-lived.
Bulls might defend the range lows, with the RSI above neutral 50, indicating bullish sentiment. The OBV has been climbing steadily in July, despite recent pullbacks, and the CMF is above +0.05, showing notable buying pressure.
Development activity has declined since June, with Solana’s metric at 24.62, below Ethereum’s 44.95 and Cardano’s [ADA] 77.83. However, weighted sentiment has turned positive, suggesting improved sentiment. A rise in SOL’s social dominance could further support the bullish case.
The Solana liquidation heatmap for the past three months highlights $170 and $185 as key zones, with $165 and $150-$155 also potential reversal points. These align with technical support levels, indicating a likely continuation of the range formation, supported by positive indicators and sentiment.
The cumulative liquidation levels show increasing negativity, indicating dominant short positions. If prices consolidate around $165-$167 and attract more short-sellers, a short-term bullish reversal could squeeze these positions, defending the range lows.
Traders should anticipate a price bounce around $165 but be prepared for the range to fail, especially if Bitcoin [BTC] struggles to hold $64,000.
