SOL Eyes $120 Target if Bulls Defend $87 Support Level Zone

Solana continues to attract strong market attention as price action reflects a mix of liquidation-driven momentum and improving technical structure. The asset trades at $88.87, posting a 3.84% daily gain and a 6.39% weekly increase. Trading volume has surged past $6.1 billion, signaling active participation. 

Analysts now focus on whether Solana can sustain its recent breakout or face another liquidity-driven pullback. The current setup places Solana at a critical point, where both short-term momentum and higher timeframe confirmation could define the next major move.

Liquidation Clusters Drive Short-Term Momentum

According to CW8900, recent price movement reflects aggressive liquidation activity across key leverage zones. The liquidation heatmap shows dense clusters below $81 and above $89. 

Price repeatedly tested the lower range, triggering long liquidations before reversing sharply. This behavior suggests strong buyer absorption at lower levels.

Moreover, the push toward $90 cleared a significant number of short positions. Consequently, the upward move gained strength as forced closures added buying pressure. This pattern indicates that liquidity, rather than organic demand, fueled the breakout. 

However, holding above $87 remains essential for continuation. A drop below this level could trigger a retrace toward $84, where the market may rebuild liquidity.

Cup and Handle Structure Signals Upside Potential

Additionally, CryptoJobs3 identifies a clean cup and handle formation on the 4-hour chart. The structure developed after a liquidity sweep below $80, where buyers regained control. The rounded base formed steadily, while resistance near $93 to $95 defined the rim.

Source: X

Recent pullbacks maintained higher lows, shaping a tight handle above $84 to $86. This formation reflects weakening selling pressure and steady accumulation. Significantly, the breakout above $93 triggered another wave of short liquidations, accelerating price movement.

Support now stands at $90, while invalidation sits below $86. Resistance appears near $107, and a break above this level could open a path toward $110. The structure suggests continuation, supported by trapped sellers and new buyers entering the market.

Monthly Close Could Confirm Trend Reversal

Meanwhile, DonWedge emphasizes the importance of the monthly close. Solana recently reclaimed the $80 to $90 range, which now acts as a key support zone. This level previously served as resistance during the downtrend.

A sustained close above $90 would confirm a shift in momentum. Consequently, this could mark the end of the six-month downtrend and open upside toward $120. Beyond that, resistance levels remain at $160 to $180, followed by the broader ceiling near $240 to $300.

However, failure to hold current levels may lead to a pullback toward $70. Momentum is improving, but buyers must defend support to confirm a long-term reversal.