Solana (SOL) Bullish Momentum Accelerates as Whale Activity and On-Chain Metrics Surge
- Solana breaks out of consolidation, approaching key resistance at $145 with over 40% monthly gains, signaling renewed bullish momentum.
- Whale and institutional activity spikes, including Galaxy Digitals $79M stake, highlighting long-term confidence in the network.
- Traders remain cautious, with mixed signals in derivatives markets and a focus on whether SOL can decisively close above $145 for a push toward $180.
Solanas [SOL] market momentum is experiencing an exciting acceleration, driven by impressive on-chain activity, growing staking interest, and the involvement of deep-pocketed whales. The layer-1 blockchains recent surge signals a promising future, with market sentiment shifting toward the bullish side.
As of the latest data, SOL is trading at $140.97, marking a notable 1.52% gain in a single day. It continues the tokens upward trajectory, pushing its monthly growth beyond a robust 40%, signaling strong momentum from both retail and institutional investors.
After a period of consolidation within a descending channel, Solana has successfully broken free, with the price now hovering just below a critical resistance zone between $138 and $145. This price range, historically acting as a major supply zone, has now become the battleground for bulls aiming to turn it into solid support. A successful conversion of this resistance into support would represent a major shift in sentiment and could set the stage for further price appreciation.
The breakout pattern seen in recent trading is indicative of a potential reversal, as SOL has consistently printed higher lows alongside increasing trading volume. However, confirmation of this bullish reversal requires a decisive daily close above $145, which could catalyze a rally toward the next significant resistance level at $180. With past rejections at this price point in mind, the current retest is crucial in determining whether Solana can maintain its upward trajectory in the short term.
Galaxy Backs Solana with $79M Move
Beyond technical price action, large institutional movements suggest a shift in market sentiment. Galaxy Digital, a key player in the blockchain space, withdrew a massive 606,000 SOL tokens valued at $79.7 million from exchanges and staked 462,000 SOL ($60 million). This move is a clear signal of long-term confidence in Solana, further bolstered by other institutional activities.
The networks metrics also support a bullish outlook. Solana has recorded 29 million active addresses, representing a 17% increase, alongside 374 million total transactions, surpassing other blockchain networks combined.
The surge in decentralized exchange (DEX) volumes, now averaging $2.27 billion per day, has even surpassed Ethereum [ETH], while transaction fees have risen 42%, hitting $7.67 million. This growth reflects not only an increase in user adoption but also enhanced utility across Solanas decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.
Despite the optimism in the spot market, derivatives data reveals that traders are exercising caution. Open interest surged 10.71% to $5.57 billion, and options volume skyrocketed 164.97% to $2.55 million, indicating growing interest in directional trades. However, total trading volume fell 31.89%, and options open interest declined 15.20%, suggesting that traders are waiting for more confirmation before making aggressive moves.
Solana Eyes Breakout Above $145
The $145 resistance level remains the critical point of focus for Solanas short-term future. While the recent price action has been bullish, with significant liquidations in the short market (short liquidations totaled $5.57 million compared to just $81.9K in long positions), the hesitance from traders is evident. Funding rates have remained neutral to slightly negative, indicating that while prices are rising, many are still hesitant to fully commit to long positions.
Moreover, Solanas current price action reflects a market on the brink of a potential breakout. With strong technical indicators, institutional confidence, and an expanding ecosystem, SOL is poised to make significant gains provided it can overcome the $145 resistance level.
Traders are closely watching for a clear break above this zone, which could set the stage for a swift move toward the next target at $180. Until then, the market remains in a delicate balancing act, with bulls looking for confirmation to assert their dominance shortly.
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Read more: https://www.tronweekly.com/solana-sol-bullish-momentum-accelerates-as/
Text source: TronWeekly
