Solana Price Shows Potential: Will It Rally to $144?

Solana has recently experienced a failed auction below $121, but quickly regained value. This indicates a potential shift in market dynamics that could lead to a move towards the $144 resistance level. The price action suggests seller exhaustion and increased buyer interest, setting the stage for possible further gains.

Key Takeaways

Solana's price dipped below $121 but quickly recovered, indicating seller exhaustion.
A failed auction often signals a potential upward movement in price.
The next significant resistance level for Solana is at $144.
Continued acceptance above the $121 level enhances the chances of reaching $144.
Volume support will be crucial for sustaining any upward price movement.

Solana price failed auction suggests bullish trigger

Understanding Solana's Price Movement

Solana price prints failed auction: Could a rally to $144 be next? - 1
SOLUSDT (4H) Chart, Source: TradingView

A failed auction occurs when the price briefly falls below a key support level, triggering liquidity, before quickly reclaiming that level without any sustained drop. In Solana's case, the price fell below $121 but failed to stay there. Buyers responded quickly, pushing prices back up and negating the breakdown.

This pattern suggests that there were not enough sellers willing to continue pushing the price down. When the market attempts to decline but fails to attract significant selling, it indicates a potential end to the downward trend. Instead of finding new value below support levels, the price is forced to move back upward in search of liquidity.

The bullish signals from this failed auction were further confirmed when Solana closed back above what is known as the Value Area High (VAH). Accepting a price above the VAH is a vital confirmation within market auction theory; it signals that the price is no longer valued at a lower level and is transitioning back towards higher values.

From a market structure viewpoint, this reclaim is a positive sign for buyers. Although Solana is operating within a broader range, the failed auction shifts the immediate sentiment from defensive to optimistic. Markets that regain value following failed breakdowns often continue to rise until they encounter the next supply area.

The next major resistance level for Solana is near $144, which represents a significant high-time-frame barrier and aligns with the upper boundary of the value area. A movement towards this level would complete a full market auction rotation from the Value Area Low to the Value Area High, which is a typical outcome following failed auctions.

It is important to note that the $144 level is not arbitrary. It has previously acted as a rejection point where selling pressure surfaced, making it a logical target for upward price movement. If Solana successfully reaches this zone, it would validate that the market has shifted from lower-value acceptance back towards higher-value exploration.

Price Action Considerations

The speed of the recovery plays a critical role in price action. Failed auctions that resolve quickly tend to be more reliable than those that recover slowly. The rapid reclaim above $121, along with subsequent acceptance above this value, indicates a sense of urgency among buyers rather than mere short-covering.

Additionally, volume trends support the bullish outlook. Failed auctions tend to be most effective when accompanied by increased trading activity as the price re-enters the value area. Continued volume support would bolster the likelihood that the push toward $144 can occur without facing early resistance, aligning with Bitwise’s perspective that heightened ETF demand could elevate Bitcoin, Ethereum, and Solana to new highs by 2026.

Future Price Action Expectations

As long as Solana remains above the reclaimed value area and sustains acceptance above $121, the potential for a rotation towards the $144 resistance continues to be strong. Should the price enter this region, it would signify the completion of a full auction cycle, while a failure to maintain value would indicate ongoing range-bound conditions.