Solana (SOL) has shown a notable bullish trend over the past 24 hours, starting at $144.30 and rapidly rising to a high of $147. This surge in buying activity indicates a significant increase in investor interest. However, that bullish momentum was briefly interrupted by an intraday drop to $144. Despite this setback, the asset quickly recovered and regained its previous position of around $145. Such a quick rebound indicates strong underlying buying pressure.
The asset’s closing price near $145, combined with its steady upward trend, suggests that investors remain optimistic about SOL’s future despite market volatility. The positive momentum of this recovery highlights the resilience and strong sentiment in the market.
Will support levels be maintained?
SOL’s approach towards the $142 support level has received a lot of attention, with analysts suggesting that a break below this level could lead to further declines towards $120. In the past 24 hours, the price of the token has fallen by more than 5%, indicating a potential risk of trend reversal. However, it remains above key support levels and stands firm against bearish market sentiment.
As observed in the last few hours, the overall market bearish trend is impacting various cryptocurrencies, including SOL. The social volume of the token has decreased, reflecting the decline in popularity level. Nevertheless, the resilience of the stock at $142 points to a possible recovery opportunity for investors.
Analysis of market sentiment and indicators
According to Santiment data, several key market indicators provide insight into SOL’s near-term trajectory. The open interest indicator showed a decline, consistent with recent price movements. This drop in open interest suggests that the ongoing downtrend is less likely to continue. However, SOL’s high funding rate raised concerns about price stability, and its long-short ratio indicated that bears had a predominant advantage.
On the other hand, technical indicators showed some positive signs. The Moving Average Convergence Divergence (MACD) indicates bullish momentum. Additionally, Chaikin Money Flow (CMF) has shown an increase following the recent decline, indicating the potential for price appreciation. Taken together, these trends suggest that if SOL successfully tests the support near $142, it could rebound toward the $160 resistance level.
SOL price trends
It is currently trading around $145.25, with a 24-hour trading volume of over $1 billion. This makes SOL his fifth largest cryptocurrency, with a market capitalization of over $65 billion. Despite recent market volatility and bearish sentiment, SOL’s resilience above the $142 level provides a nuanced outlook.
If the token tests the support near $142 and maintains stability, SOL could witness a resurgence and possibly reach the next resistance level near $160. Such a move would reaffirm investor confidence and positively boost market sentiment. Overall, although risks remain, market data suggests potential buying pressure, which could lead to a continuation of the bullish momentum.
