Solana (SOL) has recently shed 5% of its market value, dropping to a critical support zone that historically has triggered strong rebounds. This zone, which has previously sparked rallies toward the $250-$260 range, presents an opportunity for a potential 35% rise from its current price. However, with the recent surge in volume—up by 65% to over $2 billion—traders are cautiously optimistic about a repeat of this pattern.
The SOL/BTC pair is showing signs of a bullish reversal similar to the one seen in the previous cycle, where Solana surged 65% to $270 in just two weeks. While the hype surrounding the launch of a TRUMP memecoin did play a role in that rise, contributing to a 19% surge in a single day, traders are now watching closely to see if the current momentum can spark another bullish move. Bitcoin’s consolidation and talk of an “altcoin season” provide further context for the 35% rebound speculation.
Yet, despite these optimistic signals, it’s still too early to definitively call for a recovery. The key question remains: will Solana form a solid bottom before retail and speculative capital rush into the “dip”?
At the time of writing, Solana has seen strong buying interest in the futures market, with Open Interest (OI) rising 8.37% to $5.85 billion. However, the recent liquidation of over $14 million in long positions during Solana’s 2.65% drop indicates heightened risk. While traders are betting on a potential rebound, there’s a clear cautionary note. If demand from spot trading doesn’t follow suit, further declines are possible. Data from Binance shows three consecutive days of sell orders, signaling a shift in market sentiment.
In conclusion, while a 35% rebound to $250 remains a possibility, the risk of further liquidation looms large. Traders must proceed with caution as the Solana market navigates this critical juncture.
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. Coin Brief is not responsible for any financial losses.
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