- Solana is showing strong bullish signals, maintaining support above $150 and forming an expanding channel pattern that could push its price toward $200.
- While technical indicators point to a potential reversal, high volatility and liquidation risks remain key factors to monitor.
Solana continues to gain attention as its price action reveals a potential bullish reversal that could push it toward the $200 mark. Backed by strong trading volume and consistent technical indicators, this altcoin is poised for a breakout if favorable conditions persist.
ALSO READ:Pi Network Wallets Show Zero Balances, Users Demand Answers
Strong Support and Steady Gains
Solana has remained above the key $150 support level despite a 17.96% year-to-date correction. With a market capitalization of $81.49 billion and dominance of 2.41%, it currently holds the 6th position among cryptocurrencies. Over the last seven days, SOL has seen a modest gain of 2%, supported by an intraday trading volume surge of over 97%, totaling $3.1 billion.
These metrics point to a stable base, suggesting that traders are positioning for a longer-term move upward.
Technical Patterns Show Reversal Potential
Solana has been trading inside an expanding channel pattern since April, a formation typically associated with building bullish energy over time. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is showing signs of bullish convergence near the neutral zone. This crossover pattern hints at a potential reversal in trend, strengthening the case for a rally.
Additionally, Bollinger Bands are widening on the daily chart, signaling rising volatility. After a recent retest of key support, SOL appears to be bouncing back into its bullish range, showing signs of renewed buying interest.
Price Levels to Watch
If the bullish sentiment remains intact, Solana could challenge its immediate resistance at $158. A break above this level would open the door for a move toward $189. Under strong bullish conditions and growing adoption, analysts believe SOL could revisit the $200 mark. Some even project a potential rally to $227 later this quarter if market optimism continues.
Risks Remain Amid Volatility
Despite this optimistic outlook, Solana is not immune to downside risks. The open interest-weighted funding rate has been fluctuating, reflecting high volatility in the market. Liquidation levels have dropped from a $50 million peak to under $7 million, indicating reduced leverage but increased price swings.
Should liquidation pressures rise again, SOL could retest support levels at $135 or even $127 in the near term.
With strong on-chain signals and technical indicators aligning, Solana is well-positioned for a potential rally toward $200. However, volatility remains a factor to watch closely.
MIGHT ALSO LIKE:Ethereum Staking Hits $100 Billion as Investor Confidence Soars
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.