Solana (SOL) is currently trading around the $90 threshold, as bulls and bears compete fiercely over this crucial price point. The coming days are pivotal, with the potential for SOL to either surge higher or retreat to lower support levels.
Over the past month, SOL has enjoyed a nearly 7% increase, just shy of the $90 resistance zone. Trading volumes have shown a marked increase, climbing 30% and approaching $5 billion, which represents about 10% of the circulating market cap of the token.
A geopolitical shift occurred earlier this week when former President Donald Trump announced a pause on U.S. strikes against Iranian power plants, a move that positively impacted crypto markets. This decision momentarily propelled SOL above the $90 mark, though persistent selling pressure has prevented it from consolidating above that level.
Liquidation data reveals that over $370 million in short positions were liquidated during this upward flash, hinting that if buyers can sustain momentum, a larger short squeeze could follow. The daily chart’s Relative Strength Index (RSI) currently sits at 54, having briefly surpassed 60 last week, indicating that while positive momentum exists, it has yet to initiate a breakout.
Price Levels to Monitor
If SOL decisively breaks past $90, eyes will turn towards the $100 target, an 11% increase. A sustained rally beyond that could potentially propel the price to $120, yielding a significant gain of 30% from its current value.
On the 4-hour chart, a buy signal emerged as SOL approached $90 earlier, indicating that institutional buyers have shown interest at this price point. This development reinforces the technical significance of the $90 level.
Conversely, if selling pressure escalates, SOL could slide to $85 or possibly $80, depending on the strength of any bearish momentum.
On-Chain Insights and Monthly Trends
On-chain analysis from Artemis indicates that total Solana transactions dipped to 774 million last week, marking a 20% decline from recent peaks, suggesting reduced network activity.
The Fear and Greed Index has improved from an extreme low of 5 to 46, showing that investor sentiment is inching back towards a more neutral stance, although caution remains prevalent.
Analyst Crypto Patel emphasizes the significance of a monthly bullish engulfing candle, a pattern that often precedes major SOL rallies. His observations note that past movements—rising from $1.03 to $260 in 2020 and from $8 to $296 in 2022—were consistently preceded by this formation. Patel warns that without such an engulfing candle, a rally may not materialize.
Current technical indicators reveal a mixed landscape. The monthly RSI sits at 35.44, while SOL trades below all major moving averages, which are located at $104, $111, $152, and $160. Additionally, the MACD line registers at -1.26, below its signal line of -20.88, accompanied by a negative histogram that suggests pressure may remain in the short term.
As of now, SOL is priced at $89.33, with a 24-hour trading volume of approximately $6.95 billion and a market cap nearing $51.64 billion.
