- Solana has broken out of a long-term descending channel, shifting technical momentum bullish.
- Exchange outflows and short liquidations currently favor upside continuation.
- Network growth lags price action, making $145 a decisive inflection point.
Solana is approaching a critical technical and psychological level as its price presses toward the $145 mark. The rally reflects a decisive shift in trader sentiment, with both retail participants and larger, more strategic players leaning bullish. Yet beneath the surface, the network’s usage metrics tell a more restrained story, creating a widening gap between price momentum and on-chain growth.
That tension now defines Solana’s short-term outlook. Momentum is strong, positioning favors the upside, and sellers appear increasingly squeezed. But without a rebound in network activity, the sustainability of the move remains an open question.
Solana Breaks a Long-Term Downtrend
Solana recently broke out of a multi-month descending channel, a technical development that changes the broader narrative. What had looked like an extended corrective phase is now showing signs of trend recovery.
Price hovered near $140 at the time of writing, with $145 acting as the immediate resistance. A decisive move above that zone would expose higher targets near $150 and potentially $170. Momentum indicators support the breakout attempt, with MACD flipping bullish and histogram bars expanding, signaling strengthening upside pressure.
Still, follow-through matters. A failure to hold above former resistance could pull Solana back into consolidation, turning the breakout into a false start.
On-Chain Activity Sends Mixed Signals
Despite rising prices, network participation has cooled noticeably. New weekly wallets have dropped sharply compared to late last year, signaling reduced onboarding and usage. Historically, sustained rallies tend to coincide with expanding participation, not contraction.
For now, traders appear willing to front-run a breakout rather than wait for fundamentals to catch up. This imbalance suggests that sentiment, not usage, is driving the move—an approach that can work in the short term but carries risk if momentum fades.
Exchange Flows and Liquidations Favor Bulls
Spot exchange data quietly supports the rally. Net outflows remain negative, indicating that more tokens are leaving exchanges than entering. While the scale of withdrawals is moderate, it still points to reduced sell-side pressure rather than aggressive distribution.
At the same time, short sellers are feeling the heat. Recent liquidation data shows short positions being wiped out at a faster pace than longs, particularly as price holds firm near resistance. A clean break above $145 could trigger another wave of forced short exits, amplifying upside volatility.
Broader market dynamics also matter. Bitcoin’s recent push back above $90,000 has reignited risk appetite across the market, even as analysts remain divided on whether the larger trend is bullish or entering a distribution phase.
Liquidity data suggests Bitcoin is magnetized toward the $96,000–$100,000 zone, but long-term holder behavior hints that selling pressure could rise near that psychological level. For altcoins like Solana, Bitcoin’s ability—or failure—to clear $100K cleanly could heavily influence follow-through.
Also Read: Solana Nears $145 as XRP Defies $454M Crypto Fund Outflows — What’s Driving the Split?
Solana has built enough momentum and positioning strength to seriously challenge the $145 resistance. For now, traders are in control, supply pressure is muted, and technical structure favors continuation. However, network growth remains the missing piece. If usage rebounds, the rally gains durability. If not, sentiment-led momentum may struggle to sustain itself beyond the next key breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
