Solana Price Prediction: Will Solana Price Hold Its Gains Amid $25M Liquidations?

Solana's price recently surged by 11% to reach $144. However, persistent liquidations in future markets raise concerns about sustaining this upward momentum towards $150 and $160. Will Solana surpass these resistance levels and reach back to a new high?

1- Solana Price Analysis: SOL Price Surge and Resistance at $140 

Solana experienced an 18% price increase, testing resistance at $140 amid a broader market recovery after Monday's turmoil. Although sentiment has slightly improved, it may not be enough to sustain the price increase due to ongoing liquidations in the futures market.

Current Price Performance 

On Tuesday, Solana traded at $137 on Binance during US business hours. After recovering from a drop to $110, the bulls overcame a minor hurdle at $130 but stalled at $140.

2- Solana Price Prediction: Market Tensions Shape Solana's Future Outlook 

War tensions in West Asia keep markets, including crypto, on edge, casting doubt on the uptrend's sustainability. Therefore, exploring whether Solana's price will advance towards $200 or correct to $100 is crucial.

Threats to Solana's Price Recovery 

The crash in Solana's price began on July 29 when it stalled at $193 across various exchanges. The Federal Reserve's decision to leave interest rates unchanged, lower-than-expected jobs data, and recession fears in the US contributed to the sell-off.

Relative Strength Index (RSI) and Potential Rally 

A recovery in the RSI from the oversold region encouraged traders to long SOL. If the RSI remains above the midline in the neutral region, Solana could gain traction above $140, potentially rallying past the $150 and $160 resistance zones.

Key Breakout and Exponential Moving Average (EMA) 

Bulls will seek a breakout above the descending trend line. Overcoming this barrier is crucial for affirming a bullish trend and sustaining the rally. However, the 200-day EMA limits Solana's immediate upside, complicating the bulls' efforts. A correction below $140 could lead to further declines towards $130 and $120.

Impact of $25 Million Solana Futures Liquidations 

Liquidations have increased, adding pressure on the sell-side and dampening the market. According to analysts' data, over $1.1 billion in long and short positions were wiped out on Monday alone. As Solana's price rose on Tuesday, an additional $25 million in positions were liquidated.

Downward Pressure from Rising Liquidations 

Rising futures liquidations exert downward pressure on Solana's price. Forced selling from liquidated positions amplifies market sell-offs, often resulting in price declines and high volatility. Additionally, a 22% spike in open interest within 24 hours, while volume remains low, suggests indecision among investors and a lack of market conviction.