Why does buying Solana price at this level provide the best ROI?

• Solana price seems to be floating within a consolidation with no sign of a breakout.
• Investors can expect a drop to $31.66 or $24.52 in the near term as liquidity remains untapped below these levels.
• A daily candle close below $24.52 with no recovery will invalidate the bullish thesis on SOL.

Solana price is facing a choice that could either propel it to the highs recorded in early May or propel it into a boring sideways consolidation. Investors must pay particular attention to the below liquidity pools.

Solana price at a crossroads

Solana price has been producing higher lows since its bottom of $25.71 on June 15th. Since that local bottom, SOL has produced four higher highs as it gained 84% at one point. SOL is currently trading at $39.

There are liquidity pools of undrawn stop losses below $31.66 and the swing lows formed during the June 2022 bottoming around $26. From the market makers’ perspective, these levels are likely to be breached and, when they do, trigger a run-up.

Likewise, there are similar pools of liquidity above $47.43 and higher.

So, if investors are looking to buy the dips in Solana price, the best levels would be $31-$25. Assuming the sell stops are cleared first, the potential returns would range from 40% to 90% with SOL reaching $45 to $60.

SOL/USDT 1-day chart

While the positive narrative looks appealing, investors need to understand that the directional bias of the cryptocurrency market is in tatters. If Solana price moves to gather the above liquidity at $47 then missing an upside target could result in SOL consolidating for a long time.

However, if Solana price makes a lower low below the $24.52 support level, this barrier will become a hurdle and SOL bullish thesis will become invalid.

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