Important takeouts:
Sol’s 5% ETF-driven rally reversed completely within 24 hours to $160, exposing sustained technical debilitating at lower times and advanced time frames.
Sol trades $144.5-$147.7 supply cluster near the key. A breakdown below $144 can cause drops from $124 or $95 to $100 if support is diluted.
Sol (Sol) raised 5%, reaching $160 on Monday following news from the first exchange trade fund (ETF) that was published for trading on Wednesday. However, the momentum is short-lived as Altcoin erased all profits within 24 hours, and you can see the price drop across multiple time frames.
In the lower time frame, Sol was unable to maintain a position of 50 days or more and a 200-day exponential moving average (EMA) for more than a month. Despite some bullish, broken and broken formations, including last week’s pop $148, Altcoin hasn’t converted these into sustainable uptrends.
The $148 level is currently under pressure, with a low low below $137 confirming a low level, nullifying the possibility of short-term bullish continuation. A successful retest of the demand zone of $145-137 is crucial for Sol to regain its upside-down momentum, with a recovery of over $160.
At higher time frames (HTF), the broader trend remains bearish. In May, Sol was unable to violate a critical resistance for $180 and has since moved downwards within the downward channel.
Such a pattern could lead to bullish breakouts, but Sol has remained extremely sensitive to Bitcoin’s weaknesses for the past month. Bitcoin (BTC) is approaching its all-time high, but crypto assets have fallen nearly 50% since January 19th, reflecting relative unperformance.
If the bearish trend persists, retesting daily order blocks between $120 and $95 remains realistic and provides a more attractive, long-term entry point. But a strong day closure of over $160 over the next few weeks could potentially turn emotions over and accelerate bullish reversals and bring short-term momentum into a higher time frame.
Related: Analysts Increase SOL, XRP and LTC ETF Approval Possibility to 95%
Sol Utxo has achieved a price level where price signals are important
Sol is around $148 on Tuesday, and UTXO will deliver a price distribution (URPD), tracking the price level where tokens were acquired, providing important insights into the support and resistance zones. The current price ranges from $144.5 to $147.7 within the 14.3% supply cluster, suggesting a strong holding concentration. This level is extremely important as the range in which the current price can be maintained if purchase pressure is maintained.
GlassNode data shows that it is important to maintain above $144. Violations below this threshold indicate potential debilitating and increase the likelihood of retesting lower support zones.
The $100 to $97 range holds 3% of the supply, while the $124 supports 1.58% and offers a limited buffer. If the price is not above $144, the market risks a deeper decline for these levels.
Resistance comes at $157 and challenges upward momentum as 5.55% of supply is concentrated. For now, the dense $144.5-$147.7 cluster highlights a solid foundation where investors should protect SOL prices.
Related: Sol Price goes up to $161 after ETF News, but is Rally sustainable?
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
