Solana has begun a recovery, climbing above the $125 mark. The price of SOL is now consolidating but faces resistance near $135. Currently trading above $130 and the 100-hourly simple moving average, SOL has formed a bullish trend line with support at $130 on the hourly chart. If it breaks through the $135 and $140 barriers, the upward trend could continue.
After holding steady, Solana initiated a recovery similar to Bitcoin and Ethereum, surpassing $130. It approached the 50% Fibonacci retracement level from the recent drop between $145 and $121. With the bullish trend line supporting at $130 and trading above the 100-hourly moving average, SOL’s immediate resistance is at $135, which aligns with the 61.8% Fib retracement level. Further resistance lies at $140, and a decisive break above $145 could pave the way for gains toward $155 and potentially $162.
However, if SOL fails to overcome the $135 resistance, it might decline again. Initial support is around $130, with major support at $127. A drop below $127 could lead to a test of $124, and falling under that might push the price toward $120.
Technical indicators show the hourly MACD accelerating in bullish territory, and the RSI is above 50, indicating positive momentum. Key support levels are $130 and $124, while major resistance levels are $135 and $140.
Frequently Asked Questions
Of course Here is a list of FAQs about Solanas potential recovery and the need for stronger momentum designed with clear questions and direct answers
Beginner General Questions
1 What does it mean that Solana is showing signs of recovery
It means that after a period of declining or stagnant prices Solanas price has started to increase and key metrics like trading volume and user activity are improving
2 Why is stronger momentum important for the recovery
Stronger momentum means more people are buying and holding with confidence Without it the price increase could be temporary and a small wave of selling could easily reverse the gains
3 What are the typical signs of recovery to look for
Look for a consistent upward trend in price over several days or weeks a significant increase in trading volume positive news about the Solana ecosystem and new projects launching on the network
4 Is now a good time to invest in Solana
This is a personal decision and depends on your risk tolerance While signs of recovery are positive the market is still volatile Its crucial to do your own research and never invest more than you can afford to lose
5 What caused Solanas price to drop in the first place
The drop was due to a combination of factors including the broader crypto market downturn past network outages that shook investor confidence and the impact of the FTX collapse
Advanced Technical Questions
6 What specific onchain metrics indicate a genuine recovery
Look for a sustained increase in Daily Active Addresses growth in Total Value Locked in DeFi protocols on Solana and a high Network Ratio
7 How does funding rates data relate to momentum
Positive funding rates in perpetual futures markets mean traders are paying to hold long positions indicating bullish sentiment Consistently positive rates can signal strengthening momentum
8 What is the difference between a technical rebound and a sustained recovery
A technical rebound is a shortterm price bounce after a steep fall often driven by traders A sustained recovery is backed by fundamental improvements like growing developer activity and realworld use cases leading to longterm growth
9 Could past network instability still hinder Solanas momentum
Yes