In a previous analysis, two key zones were identified for Solana as potential turning points that could significantly influence price action. As the situation developed, the price eventually closed below the marked support zone on the 4-hour timeframe, which introduced the possibility of further downside.

This scenario materialized, with Solana declining by approximately 14%, aligning with the previously outlined bearish outlook. Currently, conditions may be forming for a renewed upward movement, contingent upon a specific development described in the following analysis.

Solana technical analysis

SOLUSD - 1 Day Time Frame

To begin with the initial setup, the price dropped below the July low, which, from a market structure perspective, constitutes a liquidity sweep. This move likely triggered a large volume of Sell Stop orders, often used by market participants as Stop Losses for long positions. Such a setup can indicate a point where buy-side interest may emerge, particularly among commercial participants.

However, a secondary and more decisive entry condition remains relevant. In this context, that condition involves a confirmed daily close above the most recent resistance zone, which currently defines the prevailing bearish structure.

Solana price target

This resistance zone is highlighted in orange on the attached chart, with the daily timeframe used for reference. Should the price achieve a confirmed close above this zone on the daily chart, it could suggest the formation of a valid bullish setup. At that stage, both longer-term investors and short-term market participants may identify a potentially favorable opportunity for initiating long positions.

A protective Stop Loss order could be positioned below the internal low by default, as a standard risk management measure. Conversely, Take Profit levels may be defined at selected Buy-Side Liquidity zones, all of which are clearly indicated on the chart.