Solana Recovers from $119 Support – Will SOL Climb Higher?

Summary:
Solana has shown strong recovery from its $119 support level, marking its fourth consecutive day of gains. With increased trading volume and optimistic predictions from some traders, the question remains: Can SOL sustain this momentum and push higher?

Key Takeaways:

Solana is experiencing an upward trend after rebounding from the $119 support zone.
A 2.45% price increase over 24 hours brought SOL to around $127.5.
Trading volume surged by 161%, indicating heightened market activity and interest in SOL.
Technical indicators show mixed signals, with a strong trend but negative buying pressure.
Many traders remain cautious, suggesting bearish sentiment in the market.

Solana [SOL]

Solana's Recovery Journey

On December 29, Solana extended its recovery, achieving a fourth straight daily gain as it bounced back from an essential support level. The asset recorded a 2.45% increase during the session, reflecting an improved sentiment in the broader market. Many traders shared their hopeful expectations on social media platform X, hinting at potential further gains.

As of the latest update, Solana was trading close to $127.5, a rise of 2.45% in the past 24 hours. Notably, trading volume surged to $4.15 billion—up 161%—indicating significant market participation.

Analyzing Solana's Price Action

The daily chart for Solana indicates a positive price rebound following a successful retest of the $119 support zone, which had previously served as a reversal area. The price maintained this support level over the last four sessions, suggesting stability.

Solana (SOL) price action

Source: TradingView

According to the chart analysis, maintaining a position above $119 could pave the way for a move towards $145, presenting an upside of approximately 13.8%. Furthermore, the Average Directional Index (ADX) has reached 25.62, crossing the crucial threshold of 25, which implies that the current trend may be strengthening. However, the Chaikin Money Flow (CMF) value is at -0.13, indicating that selling pressure remains influential, reflecting low buying interest at these price levels.

Despite these mixed signals from technical indicators, crypto analysts on X are making ambitious forecasts. Some speculate that SOL could rally to $144 or $147, with a few even suggesting the possibility of surpassing the $150 mark in the near future.

Traders' Sentiments and Leverage Levels

In light of this optimistic outlook, some intraday traders are showing a bearish inclination. Current data reveals that $122.2 serves as the primary support level, while $130.4 is seen as the significant resistance level. At these points, traders have established $114.12 million in long positions and $149.74 million in short positions.

SOL Exchange Liquidation Map

Source: CoinGlass

This situation highlights that many intraday traders are leaning bearish, anticipating that SOL's price may struggle to exceed the $130.4 threshold soon.

Concluding Thoughts

As Solana continues to exhibit recovery signals after bouncing off its key support level, various indicators suggest a mix of potential upside along with cautious sentiment among traders. The dynamics in trading volume and market activity could play a crucial role in SOL's trajectory in the coming days.