Solana’s price confirms a failed bullish auction at the key $131 support level, signaling strong demand and increasing the probability of a rally toward the next major resistance at $187.
Summary
- Multiple failed breakdown attempts at $131 confirm strong buy-side absorption.
- Market structure favors upside as price holds above key high-time-frame support.
- Reclaiming value area levels could accelerate a bullish rotation toward $187.
Solana (SOL) price is showing a decisive shift in momentum after forming a bullish failed auction pattern at the high-time-frame support level of $131. The repeated failure of price to break below this support, despite multiple attempts, has strengthened the case for a potential upside rotation.
With buy-side pressure increasing and structural support holding firm, Solana’s price action now suggests that a bullish continuation may be developing. Traders are closely watching whether this failed auction will translate into a sustained rally toward the next significant resistance region at $187.
Solana price key technical points
- Solana confirms a failed auction at the $131 support level, signaling strong demand.
- Price repeatedly rejected breakdown attempts and reclaimed support with strong buybacks.
- A bullish rotation toward $187 becomes possible if Solana holds above value area levels.
Solana’s recent price behavior reveals a clean failed auction pattern forming around the $131 high-time-frame support. A failed auction occurs when the market attempts to break through a significant support or resistance level but is unable to sustain price beyond it. Instead, price quickly reclaims the level, signaling that the underlying order flow is not strong enough to push continuation in the attempted direction.
In Solana’s case, multiple breakdown attempts beneath $131 were absorbed by intense buying pressure, pushing the price back above the support each time.
This renewed strength follows broader ecosystem enthusiasm, with Scaramucci recently naming Solana one of the major winners in the tokenization sector, adding an extra layer of confidence to market sentiment.
This is a significant development because the $131 level has acted as a structural anchor point in Solana’s broader trading range. Each time price dipped under the swing low, buyers stepped in aggressively, preventing any move toward the next significant support at $105.
The inability of bears to sustain their position confirms that liquidity below $131 has been fully absorbed and that demand dominates the order book at this level. This establishes $131 as a confirmed failed auction zone and validates the bullish interpretation.
Following the establishment of the initial swing low, Solana produced a clean rally into a swing high before returning to retest the $131 region. This retest is currently unfolding, and the strength of buybacks suggests that the market is respecting the support. With each defense of the level, the probability of a bullish continuation increases.
This growing optimism aligns with broader momentum in the Solana ecosystem, including Solana Mobile’s plan to launch the SKR token in January, which has helped reinforce positive sentiment. From a structural standpoint, Solana appears to be transitioning from a reactive decline into a possible accumulation phase.
If Solana remains above the $131 support, the next major upside objective sits at the $187 resistance level. This region represents a high-time-frame zone that previously acted as a rejection area and is now the primary target for any rally that emerges from the failed auction.
Failed auction theory further supports this interpretation. When price attempts to break a key level and fails, the market often rotates sharply in the opposite direction. Such moves occur because trapped participants on the losing side must unwind their positions, fueling additional momentum. In Solana’s case, the failure to break down below $131 sets the stage for a reversal toward the upside.
What to expect in the coming price action
If Solana holds above the $131 support and regains control of the value area levels, a bullish continuation toward the $187 resistance becomes increasingly likely. A breakdown below $131 would invalidate the failed auction and reopen the path toward $105, but current order flow favors the upside scenario.
Source: https://crypto.news/solana-price-forms-a-bullish-failed-auction-at-131-rally-ahead/
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