Will Solana Set New 2023 Highs?

The cryptocurrency market has recently witnessed a substantial uptick in value, notable in the growth of major cryptocurrencies.

Solana's SOL cryptocurrency has registered a 20% price bump during the past month, and has enjoyed a meteoric rise of nearly 570% since the start of 2023. Is there room for larger gains before the new year?

1 week time frame

SOLUSD - 1 Week Time Frame

The weekly time frame presents how the price behavior of SOL instantly rebalanced the Buy side Imbalance/Sell side Inefficiency.

Last week, SOL dropped to the Order Block (OB) level which was subsequently followed by a bullish move.

It's worthy to note that this week, SOL's price tested the 0.5 level from the wick of one of the previous candles. While this may seem irrelevant, candle wicks are perceived by algorithms in the same way as Gaps.

4 hour time frame

SOLUSD - 4 Hour Time Frame

Examining the price on a lower time frame, it can be seen that the price has indeed formed a clear bullish structure, testing the current Order Block. This may lead to the formation of another bullish impulsive move.

An additional parameter to take into consideration is the Sell side Imbalance/Buy side Inconsistency (SIBI). If the price were to take advantage of the Order Block, the SIBI would need to be closed by the body of the candle.

If the price uses utilizes the SIBI to build a bearish move, a deeper correction of the bullish structure may occur, and for maintaining buy positions, it is essential that SOL does not close below the Higher Low on the daily timeframe.