**Bullish Divergence**
Solana (SOL) has formed a bullish divergence on its daily chart, with the price making lower lows while the Relative Strength Index (RSI) creates higher lows. This is a key indicator suggesting a potential trend reversal from a downtrend to an uptrend, encouraging traders to buy.
**Strong Support Level at $127.5**
SOL has been consolidating near a crucial support level of $127, which has historically triggered significant upside rallies (at least 20%). This support level has been tested multiple times since March 2024, making it a strong buying zone for investors.
**On-Chain Metrics and Liquidation Levels**
According to Coinglass, major liquidation levels are at $126.5 (lower side) and $136.8 (upper side). As the price approached $136.8, about $41 million worth of short positions were set to be liquidated, adding upward pressure to the price. Conversely, if the price had dropped below $126.5, approximately $120 million worth of long positions would have been at risk.
**Increased Trading Volume**
SOL's trading volume surged by more than 64% in the last 24 hours, indicating higher participation and strong buying interest, further supporting the price increase.
**Market Positioning**
The data shows that bulls are currently dominating the market, with more potential for short liquidation than long liquidation. This imbalance suggests bullish control and contributes to upward price momentum despite the broader bearish market sentiment.
Overall, SOL's recent pump is driven by a combination of technical signals (bullish divergence), key support levels, strategic market positioning, and increased trading activity, even though the overall market remains bearish. DYOR
