- Solana has broken its 10-day consolidation by sweeping liquidity above and is now reacting to a marked supply zone
- The H1 market structure has turned bearish, forming lower highs and lower lows
- Scenarios suggest a bearish continuation or a possible fakeout toward a higher supply zone—traders must watch key levels
In our last analysis, we highlighted how Solana was consolidating for over 10 days, building liquidity both above and below. The big question was: which way would the price move first?
Well, Solana finally made its move by sweeping liquidity above and is now reacting to a supply zone that we had previously marked.
Market Structure Breakdown
If we zoom in to the H1 timeframe, things start to get interesting.
Solana’s market structure has turned bearish, with lower highs and lower lows forming consistently. After sweeping liquidity, the price is now reacting to a supply zone, which suggests that bearish momentum might continue.
However, here’s the tricky part: the price could either respect this supply zone and move lower, or it might fake out, push higher, and target the next supply zone above. This dual scenario keeps traders on their toes.
What Could Happen Next?
- Bearish Continuation: If the supply holds strong, the price could continue its downward trend, breaking more liquidity zones below.
- Fakeout and Push Higher: Alternatively, Solana could fake a bearish reaction and aim for the supply zone above. This move would trap early short sellers and target fresh liquidity.
Why Liquidity Matters
Understanding liquidity is crucial in crypto trading. Why? Because if you don’t recognize where liquidity lies, you risk becoming part of it. It’s the simple truth that separates informed traders from those caught off guard.
The Bottom Line
While we can anticipate potential scenarios, let’s be honest: the market is unpredictable. Solana could defy all expectations and move in ways we don’t foresee. That’s why these insights are possibilities, not guarantees.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
