Solana (SOL) Update: Absorption Phase and Price Outlook
Current Situation: Price Absorption at $145
Solana (SOL) is currently experiencing a price absorption phase, which is a critical moment in the market where price consolidates as it absorbs the remaining volume from the previous wave. This phase is often marked by sideways price action as the market attempts to clear the leftover supply or demand.
In this case, the largest volume peak from the prior price wave is centered around $145. This price level acts as a significant zone where the market is absorbing any residual selling pressure from that volume peak, leading to the current stagnation in price movement at this level.
What Is Absorption and Why Is It Important?
Absorption typically occurs after a significant price move when the market needs to clear out large buy or sell orders before continuing its trend. Itâs a period of consolidation, often accompanied by reduced volatility, as the market absorbs the remaining supply or demand from the previous move.
In SOLâs case, the absorption phase at $145 is a natural part of the price cycle following the bullish wave that preceded it.
Key Levels: $145 and $157
âą $145 Absorption Level: As mentioned, the price is currently hovering around $145, where the market is clearing out the largest volume peak from the prior wave. The sideways movement here indicates that the market is in the process of digesting that supply, and this zone will be crucial in determining the next move.
âą $157 Target: While the price is consolidating at $145, the next level to watch is $157. Once the absorption phase concludes, assuming that buying pressure resumes, SOL could make a move toward this target. This would signal the continuation of the uptrend and the next leg higher in the broader bullish market cycle.
Not WorriedâPatience Is Key
Given the current market dynamics, thereâs no immediate cause for concern. The sideways movement is a healthy part of the market structure as SOL prepares for its next move.$BTC
