Investors flood Solana with $120M in liquidity – Is SOL poised for a breakout?

• Despite the recent gains, the $143 resistance was not breached.
• The steady buying pressure alongside the bridging news gives investors faith.

Increased bridging of liquidity to the Solana [SOL] network from competing chains signaled confidence in the network from users.

The $120 million flow of liquidity over the past month was good news for the bulls. Of this, $41.5 million came from Ethereum [ETH], and the second-largest inflow to SOL was from Arbitrum [ARB], measuring $37.3 million.

This inflow helped the Solana-native memecoins such as POPCAT rally aggressively from the past week’s lows. Solana itself had a bearish 1-day structure, but increased buying pressure meant that this could soon change.

Here’s why $143 remains key

Source: SOL/USDT on TradingView

In a recent analysis, it was pointed out that Solana retained a bearish market structure on the daily chart despite its gains over the past ten days. The lower high at $143 was not yet broken.

However, the move beyond $120 meant that the lower timeframe charts were more strongly bullish.

The OBV has been rising higher over the past ten days, making a new high beyond that of March’s. The OBV was about to challenge the January highs, a sign of strong buying pressure in recent days.

Moreover, SOL’s RSI flipped the neutral 50 level to support, showing bullish momentum on this timeframe.

Source: Coinglass

The $150-$160 region was the short-term price target due to the liquidity clusters overhead. The $140 area, merely 6% above the Solana market price, was also a strong magnetic zone.

To the south, the $123 area was an attractive target as well, as it had nearly $5 billion in liquidations clustered around it.

This lined up with the support level another analysis underlined, marking the $120-$130 region as an accumulation zone.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion