- Solana is gaining bullish momentum, with rising trader activity and network growth pushing its price toward a potential breakout at $165.
- If it breaks the $135 resistance, SOL could rally higher, but failure may lead to a pullback to key support levels at $125 or $112.
Solana (SOL) is showing strong signs of a potential breakout rally, fueled by increasing trader activity and growing network engagement. After bouncing back from the $125 support level, SOL is eyeing the $165 mark as bullish sentiment gains momentum in the derivatives market.
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Solana’s Price Recovery and Resistance Challenge
Solana has made a notable recovery with an intraday gain of 3.89%, pushing its price to $129. The cryptocurrency is now approaching a critical resistance trendline near $135. On the daily chart, SOL has formed a bullish reversal pattern, indicating growing buying pressure.
The price action suggests that Solana is trading within an expanding falling channel pattern, with the potential for an early breakout. If the $135 resistance is broken, SOL could rally towards its next major resistance level at $165. However, failure to breach this level could result in a short-term correction.
Surge in Active Addresses Signals Network Growth
Beyond price movements, Solana’s network activity has also seen significant improvements. The number of daily active addresses on the blockchain has increased from 2.77 million to 3.3 million over the past two weeks. This rise in user engagement suggests a potential resurgence in transaction activity.
In February, Solana processed 1.62 billion non-vote transactions and 8.2 billion vote transactions, indicating a temporary slowdown compared to January. However, March data shows a recovery, with vote transactions reaching 8.77 billion and non-vote transactions stabilizing at 1.54 billion. These trends highlight the network’s growing strength despite short-term fluctuations.
Bullish Sentiment in Solana Futures Market
The derivatives market further supports the case for a potential Solana breakout. Open interest in Solana Futures has risen by 1.88%, reaching $4.88 billion. Additionally, the long-to-short ratio has stabilized at 1.0121, indicating a balanced market outlook.
A crucial indicator of bullish sentiment, the funding rate, has also turned positive at 0.0034%. This suggests that traders are willing to pay a premium to maintain their long positions, reinforcing confidence in SOL’s upward movement.
Solana Price Forecast: Will It Hit $165?
Based on technical indicators, Solana’s next major resistance lies at $138. A successful breakout above this level could pave the way for a rally toward $165. However, if the price faces rejection, key support levels are at $125, followed by $112.
If bearish pressure intensifies, the pivot support level at $97.69 may come into play. For now, the increasing trader interest and rising network activity suggest that Solana could be on the verge of a strong upward move.
As market sentiment remains bullish, all eyes are on whether Solana can break through resistance and reach its ambitious $165 target.
