-
Analysts are turning bullish on Solana as a rare buy signal on charts suggests a potential rebound toward the $250 resistance level.
-
As Solana’s Total Value Locked (TVL) rises to $8.312 billion, strong fundamentals coupled with bullish derivatives metrics elevate market enthusiasm.
-
“This signal is often a precursor to strong bullish momentum,” noted crypto analyst Ali (@ali_charts), emphasizing the possibilities for long positions.
Solana’s recent rebound is supported by technical indicators and strong fundamentals, revealing potential for a price breakout toward $250 resistance.
Analysts predict rebound based on technical indicators
The TD Sequential indicator has issued a buy signal on the daily chart, raising anticipation of a price recovery. Crypto analyst Ali (@ali_charts) noted,
“This signal is often a precursor to strong bullish momentum, suggesting an opportunity for long positions at these levels.”
Source: X
According to the daily chart, the Bollinger Bands suggest conditions are oversold, with SOL trading near the lower boundary at $176.52. Key resistance is set at $213.88, aligning with the midline of the Bollinger Bands, and $251.24, the upper boundary.
A breakout beyond these levels could spark further upward momentum, yet a drop below $186 might push prices down towards $165, a historically significant demand area.
The Average Directional Index (ADX) currently stands at 33.39, confirming the strength of the ongoing trend. While recent momentum has been bearish, the ADX indicates that any breakout above resistance could generate significant buying activity.
Traders are closely monitoring $186 as an immediate support level.
Source: TradingView
Strong fundamentals back Solana’s growth
Solana’s network fundamentals remain robust, with its Total Value Locked (TVL) at $8.312 billion, reflecting a 1.83% increase over the last 24 hours.
The network also recorded stablecoin market capitalization at $4.972 billion and generated $3.08 million in fees and $1.54 million in revenue within 24 hours.
Activity on Solana’s decentralized exchange protocols continues to surge. Solana outperformed Ethereum (ETH) and other competitors in December, with a trading volume of over $97 billion compared to Ethereum’s $74 billion.
The platform’s active addresses stand at 4.16 million, with 70.34 million transactions processed in the last 24 hours.
Derivatives market signals growing interest
Recent data from Coinglass shows mixed signals in the derivatives market. Open interest increased by 8.85% to $4.68 billion, while options volume surged by 301% to $10.1 million, reflecting heightened speculative activity.
The Binance long/short ratio for top traders is highly bullish at 5.07, indicating that a majority of traders are anticipating upward momentum.
Source: Coinglass
Despite the optimism, trading volume declined by 6.81% to $9.24 billion, hinting at market caution.
Liquidation data shows balanced pressure, with $4.89 million in long liquidations against $4.52 million in shorts, indicating a tug-of-war between bulls and bears.
Solana’s technical setup, combined with strong network activity, suggests a potential for recovery if key resistance levels are broken.
Conclusion
In summary, Solana’s recent technical indicators, along with solid fundamental support, indicate a possible significant upward trend. A break above the $250 resistance level could further enhance market confidence, while attention to key support areas remains crucial for traders.
