Solana (SOL) has shown increased momentum following its bounce from a technical confluence zone. Both whales and retail investors are accumulating, boosting the bullish potential. Could a break above $206 be on the horizon ?
Solana, the flagship cryptocurrency, appears to have regained bullish momentum after its recent bounce from a key technical support level. This technical setup, combined with positive on-chain signals, suggests a new potential upward phase could be forming.
Solana recently rebounded from a technical confluence zone, where an ascending trendline and a golden Fibonacci retracement range (0.618 to 0.7) intersected. This configuration suggests that Solana might be preparing for a new bullish impulse.
Additionally, with the Stochastic RSI in oversold territory, this indicates that Solana has potentially found a local bottom. This type of technical setup often precedes significant upward movements in trending markets.
As mentioned in our previous article, the risk of a correction between $155 and $140 is still present if SOL fails to maintain momentum and Bitcoin cannot break through its POC at $118,000.
Solana’s on-chain data further strengthens the bullish outlook. According to CryptoQuant, SOL whale addresses have quietly been accumulating positions at current prices, demonstrating their confidence in the cryptocurrency’s potential.
At the same time, purchase volume from retail investors, particularly for positions below $1 million, has seen a significant increase. This dynamic reflects renewed confidence among smaller holders.
The simultaneous accumulation by whales and retail investors reinforces Solana’s bullish potential, especially when aligned with positive technical signals.
The next key milestone for Solana will be breaking through the recent local high of $206, a level that has historically represented significant resistance.
If the accumulation trend continues, with whale orders providing crucial support and retail investor inflows adding momentum, Solana is likely to attempt to overcome this strategic level.
Overall, despite general market conditions and Bitcoin’s dominating influence, Solana’s technical and on-chain signals indicate growing bullish strength.
Breaking through the $206 threshold could be the next step in this positive dynamic to watch. Nevertheless, a final short-term correction risk remains possible. This would represent a major opportunity as SOL could reach $300-400 before the end of the year.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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