Solana (SOL) Price Rise Threatened by Weakening Bullish Signals

Solana ( SOL ) price surged 12% in the past six days, riding a wave of bullish momentum that has broken through multiple resistance areas. The rally was driven by technical strength, including bullish EMA positioning and supportive BBTrend values.

However, with recent gains accumulating rapidly, traders are now assessing whether SOL can maintain this upward momentum. Whether it can test and hold key resistance levels will be crucial in shaping the next leg of price action.

BBTrend shows strong bullishness for SOL

The SOL BBTrend is currently positive at around 8.08, indicating that Solana has strong bullish momentum. This means that the price is trading above the middle Bollinger Band, showing good market sentiment.

A positive BBTrend typically indicates that the price trend is well supported and the asset is likely to continue to rise. However, BBTrend itself should be used in conjunction with other indicators to confirm the overall strength and sustainability of the trend.

The BBTrend indicator measures the strength and direction of a trend using Bollinger Bands, which track volatility. While the current BBTrend value remains positive, it has declined from 9.01 over the past few days, suggesting that Solana’s bullish momentum may be waning.

This decline could mean that the current trend is weakening, which means that the SOL price could face greater resistance and could shift to a more neutral or sideways trend.

Can Solana break through resistance and rebound?

At press time, SOL is trading at $152.2, down 1.6% over the past 24 hours. However, despite the smaller drop, the price is still trending upwards.

More importantly, the $163.66 level is a major resistance. If Solana breaks out of this level, a rally is likely.

Furthermore, the RSI reading of 52.31 indicates neutral momentum, while the MACD hints at underlying bullish strength building. Hence, all eyes will be on whether Solana can maintain its momentum and move higher.

SOL whales’ accumulation signals a potential surge

Interestingly, Solana’s top holders (whales holding more than $5 million) now control 57.07% of the stablecoin supply. The rise in whale concentration indicates strategic accumulation. Historically, such behavior by large holders has often preceded price increases.

Therefore, this growth has raised expectations that SOL could see a major surge soon. Whales are likely preparing for a strong push, which shows their confidence in Solana’s long-term prospects.

Will SOL liquidations lead to more volatility?

Liquidation data shows that over the past 24 hours, $3.4839 million worth of long positions were liquidated, while $700.2 million of short positions were liquidated. Such a high rate of long position liquidations suggests that traders are betting that prices will continue to rise.

However, this also indicates that the market is highly leveraged, which could backfire if key resistance levels fail to hold. Therefore, if the market moves against overextended traders, prices could see further volatility.

Rising open interest suggests market optimism

SOL’s open interest increased by 2.26% to $2.45 billion. This increase indicates growing interest among traders and the expectation of increased volatility in the near term.

Additionally, as Solana dominates DEX trading volume, traders are betting on its potential to outperform the market.

Given SOL’s strong performance and whale accumulation, the potential for a bull run is undeniable. If the price breaks through resistance and avoids further liquidations, the market could see a rapid rise.

However, we should proceed with caution at this time due to the risk of liquidation. Nevertheless, Solana is still expected to lead the next cryptocurrency rally.

With large fluctuations, will SOL see a 12% adjustment or a 27.8% price increase?

The EMA lines for SOL remain bullish, with the short-term exponential moving average (EMA) above the long-term EMA. This alignment suggests that the price trend is currently in an uptrend, with recent price action exceeding the long-term average.

However, the short-term EMAs are beginning to trend down, indicating a possible loss of momentum. If these short-term lines fall below the long-term EMAs, a bearish crossover could occur, signaling the start of a downtrend. Traders often view this "death cross" as an early warning that the current bullish trend is weakening.

If the selling pressure persists, SOL may test the $144 and $141 support levels. These support areas could play a key role in stabilizing the price and providing a platform for a potential recovery.

On the other hand, if the bullish momentum resumes and the upward trend strengthens, SOL could rise back to the $161 level. If this resistance is broken, the next target could be $193, which means a possible increase of about 27.8% in the price. Such a scenario would reaffirm the continuation of the bullish trend and further gains are possible if buyers regain control.

in short

Solana surged above the resistance zone, driven by bullish momentum and technical strength. However, the $160 mark is still not able to be broken in the short term. At present, the momentum of Solana may be weakening and the selling pressure is gradually increasing. In the short term, it is expected to consolidate and pull back. The EMA line indicates that the price may have a sharp correction or a 27.8% increase, depending on the strength of the trend. In the long term, the current technical indicators are good and the market trend is determined. With the subsequent market recovery, buyers are dominant and it is expected to trigger further gains.