Solana’s recent price action signals a pivotal moment, with bullish momentum building as it approaches critical resistance levels.
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SOL traded near $171 with a 2.14% gain as it approached the $176–$188 resistance zone.
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Solana Social Dominance rose to 5.18%, indicating retail attention is returning as technicals turn favorable.
Solana is on a bullish trajectory, showcasing strong momentum as it nears crucial resistance levels and gaining renewed interest from retail investors.
Can bulls trigger a squeeze?
Liquidation heatmaps revealed that a dense layer of overleveraged short positions was stacked between $170 and $176. A decisive move above this zone could lead to significant liquidations, further enhancing the bullish outlook.
On May 18, total short liquidations exceeded $1.72 million, while long liquidations remained negligible, indicating an imbalance that could facilitate upward movement should bulls capitalize on this opportunity.
Source: CoinGlass
Funding Rates flip positive after an extended bearish phase
Moreover, Funding Rates on Binance have turned slightly positive at 0.008%, following a prolonged period in the red. This shift indicates a rising trader sentiment towards long positions and reflects a diminishing bearish bias.
Though still modest, this uptick in funding rates signals an increase in confidence among traders regarding Solana’s potential for upward movement, potentially attracting additional leveraged longs and reinforcing bullish momentum.
Source: Santiment
Social buzz picks up as retail attention returns
In tandem, Solana’s Social Dominance has climbed to 5.18%, marking a recovery from previous declines. This resurgence points towards increased engagement from retail investors, a trend typically observed at the onset of bullish movements.
While not yet matching the March peak, this renewed community interest could play a vital role in sustaining upward momentum should resistance levels be broken.
Source: Santiment
Is SOL preparing for a breakout? MACD and Fib say yes
From a technical standpoint, Solana remains above the 1.618 Fibonacci extension at $163.16, a pivotal support level amidst recent fluctuations. The MACD indicators also hint at convergence near the zero line, suggesting a potential bullish crossover in the imminent future.
Such patterns corroborate a scenario where SOL not only aims to reclaim the $176 price point but may well extend toward targets set at $189.88 and $198.13, indicated by higher Fibonacci levels. The strengthening momentum indicators bolster this breakout probability.
Source: TradingView
Development activity holds firm amid volatility
It’s critical to note that Solana’s Development Activity remains steady at 23.38, reflecting builder confidence and network fundamentals that are not solely driven by price speculation.
Although there has been a slight dip from previous highs, sustained development signals ongoing confidence among builders, which is essential for attracting long-term investment and price stability.
Source: Santiment
Will SOL overcome resistance and ignite a rally?
All indicators suggest a favorable environment for a breakout as SOL tests a historically significant resistance zone. With pressures from liquidation, heightened social interest, robust technical indicators, and stable development activity, the stage is set for a potential rally.
Should bulls successfully breach the $176–$188 range, Solana could embark on a sustained momentum push towards higher price targets.
