- The increased activity on-chain and in speculative trading pointed toward short-term bullish sentiment.
- The higher timeframe outlook remained bearish, and $130-$145 could be the levels that crush bullish hopes of recovery.
Solana’s [SOL] price bounced from Monday’s low at $95.26 to $130 at press time, a 36% turnaround within a week.
In an analysis, AMBCrypto noted that the $114 region was an important horizontal level. Now that SOL was trading above this level once more, a recovery appeared possible.
Source: Glassnode
The rising number of active addresses over the past week came alongside the price bounce. The 7-day Moving Average (MA) was used to smooth out the chart, and it showed that the downtrend of the recent months might be reversing.
The active addresses’ 7-day MA was already above the highs from early March when SOL was trading at $144.
Source: Coinglass
The near 40% price bounce of the past week also brought in a flurry of speculative trading activity. The Open Interest (OI) has risen by nearly $1.5 billion since the 8th of April.
The OI was higher at press time than at any point in March, another sign of a bullish turnaround.
Can Solana bulls keep up this pressure, or was this bounce a selling opportunity?
Source: Glassnode
The percentage of unique addresses whose buy price was below the current market price was represented in the metric above. The downtrend of Solana from $240 in January saw the metric fall to lows not seen since November 2023.
Back then, the price of Solana was $40, and the bear market was ending. The circumstances were different this time. Throughout 2024, the $120-$130 region had served as a strong support.
The drop in the percent of addresses in profit indicated that holders would use a price bounce to try to exit at break-even. Therefore, the recent price bounce might not materialize into the reversal bulls were hoping for.
Source: SOL/USDT on TradingView
The 3-day chart highlighted this bearish trend, with lower highs and lower lows since January. The $143 level was the recent lower high, and SOL was not close to breaching this level. Traders and investors can use a breakout beyond this level to flip their bias bullishly.
Meanwhile, the $99 and $85 support levels were the next price targets, so long as the structure remained bearish.
