- Solana is showing bullish momentum despite a bearish MACD divergence and negative funding rates, signaling a potential short squeeze.
- If current buying pressure continues, SOL could surge toward the $200 mark in the short term.
Solana (SOL) is showing signs of resilience despite conflicting signals across the market, and technical indicators suggest that the altcoin could soon make a push toward $200 — even as negative funding rates dominate sentiment.
Last week, SOL briefly breached the $150 mark for the first time since early March, showing a strong recovery after previously flirting with the $100 support zone. This move came alongside a breakout above a long-standing falling channel on the weekly chart — a classic bullish signal.
Also read: Litecoin (LTC) Price Prediction 2025: Will the Crypto Rebound After Years of Struggle?
Yet, not all indicators are in agreement. The MACD on the weekly chart reveals a bearish divergence, hinting that the momentum behind SOL’s recent rally might be weakening. However, despite this divergence, SOL has climbed nearly 18% over the past seven days, showing that bullish appetite hasn’t faded.
Perhaps most intriguing is Solana’s funding rate. At -0.0015%, the negative rate shows that short sellers are dominant — but also unrewarded. In futures markets, a negative funding rate means shorts are paying longs, often a contrarian bullish signal. This setup suggests that a short squeeze could further propel prices upward if bearish bets begin to unwind.
Supporting this bullish case, the daily chart reveals continued strength. Solana has broken out of a descending channel, and indicators like the Chaikin Money Flow (CMF) and Relative Strength Index (RSI) are both trending upward. These point to increasing buying pressure and growing momentum in the spot market.
Analysts now eye $171.43 — the 0.618 Fibonacci retracement level — as the next key resistance. A clean break above it could open the door to the psychologically important $200 level, especially if broader market sentiment improves.
However, investors should tread with caution. A sudden drop in volume or a shift in macro trends could send SOL back below $120. For now, though, the odds seem tilted in favor of the bulls.
Bottom line: Despite a bearish divergence and negative funding, Solana’s bullish technical structure and momentum indicators suggest a strong short-term upside — with $200 well within reach.
