- Solana is approaching a major demand zone, but liquidity levels below could still get taken first
- The M5 chart shows two equal lows (EQL) that could act as a liquidity target before a bounce
- If demand holds, Solana could see a strong move up—but if it fails, lower levels might be tested
In our last Solana price prediction, we highlighted a demand zone that could play a crucial role in the next big move.
Now, the price is approaching that level, and things are getting interesting.
If we zoom in on the lower timeframes, we can see two equal lows (EQL) just below.
This suggests that Solana might make a move to grab that liquidity before reacting to the demand zone.
On the M5 timeframe, this is exactly what I’d like to see—a liquidity sweep before a potential bounce.
But as always, nothing is guaranteed in trading. Price can move unpredictably, and while these are possible scenarios, they are not 100% certain.
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Key Scenarios for Solana’s Next Move
Scenario 1: Liquidity Grab & Bounce
- Solana could dip to take out the equal lows (EQL).
- If demand is strong, we might see a powerful bounce from our marked demand zone.
- This could set up a bullish continuation, targeting previous highs.
Scenario 2: Demand Zone Fails
- If Solana fails to hold the demand zone, sellers might take control.
- The price could break lower, invalidating the setup.
- In this case, new liquidity levels would need to be identified.
Scenario 3: No Liquidity Grab & Immediate Move Up
- Sometimes, price doesn’t come for liquidity—it just takes off.
- If buyers step in early, Solana could pump without taking the equal lows first.
Zooming in: Solana Price Action on the M5 Chart
Looking at M5, things get even clearer. The price is grinding toward the demand zone, but the liquidity sitting just below is a major factor.
I’ve seen this setup play out many times before. The market often tricks traders into thinking support will hold, only to sweep the liquidity before the real move happens.
Could this be another classic case?
Final Thoughts: What’s Next for Solana?
While the Solana analysis suggests a reaction from the demand zone, we must stay flexible. Markets move unexpectedly, and being prepared for different outcomes is key.
For now, I’m keeping an eye on the liquidity levels and how price reacts. If we get the sweep and the bounce, it could be a great trade. If not, we reassess and adapt.
What do you think? Will Solana bounce from demand, or are lower prices coming first?
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