The recent price movement of Solana (SOL) has marked a significant shift in its market structure, transitioning from a bearish to a bullish phase. This change is characterized by a break in the low-high sequence, paving the way for a potential continuation towards the $156 resistance level. According to a recent analysis, Solana’s price action has confirmed a bullish shift, with the market now poised for a move towards higher prices.
Key Developments in Solana’s Price Movement
Solana’s price has broken through its previous low-high structure, signaling a structural shift in the market. This breakout was accompanied by an impulsive move, which is often a sign of real strength in the market. The price has also established a new swing high near the value area high, confirming the bullish intent. This shift in market structure alters the broader outlook for Solana, moving it away from a bearish framework and into a transition phase where higher lows can form.
Technical Points to Consider
Several key technical points are worth noting in Solana’s price movement. Firstly, the break of the low-high structure confirms a structural shift in the market. Secondly, the establishment of a new swing high near the value area high confirms the bullish intent. Finally, a pullback towards the 0.618 Fibonacci retracement level is key to confirming the higher low and continuation towards the $156 resistance level. As seen in the SOLUSD (4H) chart, source: TradingView, the price movement is indicative of a bullish trend.
Fibonacci Retracement and High-Low Formation
After impulsive expansions, markets often fall back to Fibonacci levels as part of a healthy continuation process. In the case of Solana, the 0.618 retracement represents a high probability area where buyers could intervene to defend the price and establish a higher low. The intraday price action has slipped below the control point, suggesting a short-term rebalancing is taking place. However, this does not invalidate the bullish structure as long as the price can stabilize above the 0.618 Fibonacci zone.
Upside Target and Resistance Outlook
Once a higher low is made, Solana’s next major upside target is near the $156 region. This level represents a significant resistance zone on higher time frames and serves as a natural target for the next leg of the rally. A move towards $156 would confirm that the previous bearish structure has been completely negated and that Solana has moved into a sustained uptrend. Until this target is tested, interim consolidations and pullbacks should be viewed as part of the continuation process and not as signs of weakness, provided key support levels remain in place.
Conclusion and Future Outlook
In the short term, Solana is likely to continue consolidating as the market attempts to make a higher low above the 0.618 Fibonacci retracement. This zone will be the most important level to monitor as it will determine whether the bullish structure can fully develop. A confirmed higher low would significantly increase the likelihood of a continuation towards the $156 resistance level. For more information on Solana’s price movement and market structure, visit https://crypto.news/solana-price-confirms-market-structure-shift-156-comes-into-focus/
