A Critical Support Successfully Defended
After a period of correction marked by intense volatility, Solana has demonstrated notable technical resilience. The native token of the high-performance blockchain tested the $119 level, a major psychological and technical threshold, before initiating a recovery movement. This rebound is no accident: it suggests that buyers are still present to defend key levels, preventing for now a drop into more bearish territory.
Price analysis reveals that this rebound was accompanied by a significant increase in transaction volume. In technical analysis, a price increase correlated with rising volumes is often interpreted as a signal validating the movement. This indicates that this rebound is not simply a “dead cat bounce,” but potentially the beginning of a genuine trend reversal in the short term.
Leverage and Liquidations: The Resistance Trap
However, the path to a new ATH or even a return to annual highs remains compromised. Order blocks show strong resistance up to $237. There is even a 16H Order Block at $146, in the upper part of its range. In short, selling pressure still largely dominates Solana’s order book.
On one hand, if SOL manages to push higher, these short positions could be liquidated, triggering a Short Squeeze that would violently propel the price upward. Potentially up to $155 to $170.
On the other hand, this accumulation of leverage means the market is currently in local overheating. If the price fails to break through the resistance, a rejection could trigger a cascade of long position liquidations, forcing a new retracement toward the support at $117, or even lower.
Outlook: Breakout or Consolidation?
For this movement to transform into a genuine rally, Solana must imperatively turn its former resistances into support. It will especially need to hold $126 as support and break through $146 with volume. Otherwise, each exit from the $126 to $144 range is considered merely a short-term deviation.
Conversely, if volume were to fade, the specter of continued range-bound trading would become the most likely scenario. In a crypto market where Bitcoin often dictates the general trend, SOL’s correlation with the market leader will remain a determining factor for future developments.
The rebound from $119 offers a breath of fresh air to Solana holders and invalidates, for now, the most pessimistic scenarios. However, caution remains warranted as long as the upper liquidity zones have not been breached by a clear breakout. Traders will need to closely monitor volumes over the next 24 hours to confirm whether bulls have truly regained control.
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