Solana (SOL) Price Analysis: Why $250 May Be Next
On Wednesday, Solana (SOL) rebounded 4.95% to regain $230. This comeback follows a three-day losing skid that saw the token drop 15% due to macroeconomic uncertainty.
TradingView data shows the SOL coin began at $227, briefly rising to $238 before settling at $232. This move may imply a local bottom, launching a protracted rise. Derivatives market data supports bulls.
Solana token leveraged long holdings increased to $212.88 million from $106 million in short positions, according to Coinglass' liquidation map. This bullish skew, where long bets account for approximately 66.7% of leverage, shows traders are relying on rising prices.
Long leverage spikes following a sustained downturn, like the cryptocurrency's 15% plunge, generally indicate a bottom. Market makers might exploit this mismatch by forcing prices higher to liquidate short bets, boosting an upward rise.
Key Levels to Watch
The volume profile suggests that the cryptocurrency's value area high (VAH) and $270 resistance zones are important. Breaking these milestones might spark a big rise.
After its rally, the Solana coin consolidates above a key support zone between $222 and $230. Buyers are protected by Fibonacci retracement levels in this range, suggesting additional higher.
An important technical characteristic is the Fair Value Gap (FVG) above the support zone, a liquidity pocket. If the Bitcoin remains above this gap, it might climb to $244, the next barrier. Breaking this barrier may propel prices to $250 or $258.
According to the Balance of Power indicator, sellers have modest influence, but buyers may recover momentum by maintaining critical support levels. Traders must monitor $230 and $244 for support and resistance. A break over $244 would indicate a positive move, while dropping $230 might lead to additional losses.
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