Solana’s SOL has again captured the crypto market’s attention as its Open Interest (OI) soared to an all-time high of $6.68 billion, a leap from January’s low of $4.53 billion. This uptick hints at an influx of fresh capital flooding into SOL markets, often a precursor to optimistic price movements.
Yet, as history has shown, such bullish setups can quickly sour if sentiment shifts abruptly, a reality Solana is grappling with now. This is evident as the SOL token hit formidable resistance near the $225 mark, halting its upward trajectory. According to TradingView’s analysis, this resistance point served as a battleground for bulls, ultimately pushing the cryptocurrency into a retracement phase.
As a result, Solana dipped to $199 before stabilizing around $200, a level aligning with a critical Fair Value Gap (FVG) between $195.04 and $205.55. Historically, an FVG often acts as a magnet for price action, with traders keen to exploit imbalances between buyers and sellers.
Adding to the intrigue, the 20-day and 100-day MA intersect within the FVG zone, bolstering this level as a key short-term support. Meanwhile, the SOL token recently broke out of a symmetrical triangle pattern, often signaling a consolidation period before a decisive price move. The breakout suggests bullish momentum could still be in play, hinting at a potential recovery.
Solana Price Forecast: A Bullish Resurgence or Bearish Spiral?
At press time, SOL trades at $199, marking an 8.8% decline in the past 24 hours and dragging its market cap down to $95.28 billion. Should this bearish trend persist, the token risks breaking below the FVG, opening the door to further downside toward the $180 support level.
A breach of this zone could deepen bearish sentiment, with $175 becoming the next critical target. Any move below this point would undermine Solana’s bullish outlook, signaling more extensive losses.
Conversely, a strong recovery could see SOL retest its 50-day moving average near $218, setting the stage for a push toward the crucial $225 resistance. Surpassing this barrier could unlock bullish potential, propelling the token toward the $250 level and beyond.
Also Read: Top 3 AI Crypto Coins With 10X Growth Potential in 2025
Credit: Source link
