Solana’s recent price action has shown signs of short-term bullish sentiment, with the price bouncing from a low of $95.26 to $130 within a week. Despite this, the higher timeframe outlook remains bearish, and levels around $130-$145 could potentially crush hopes of a recovery.
The increase in on-chain activity and speculative trading has accompanied Solana’s price bounce, with the 7-day Moving Average showing a potential reversal of the recent downtrend. Additionally, the Open Interest has risen significantly, indicating a bullish turnaround. However, the percentage of unique addresses in profit has dropped, suggesting that holders may use any price bounce as an opportunity to exit at break-even.
The bearish trend on the 3-day chart is evident, with lower highs and lower lows since January. The $143 level serves as a recent lower high, and Solana has yet to breach this level. Traders and investors can look for a breakout beyond this level to potentially flip their bias bullish. In the meantime, support levels at $99 and $85 are the next targets as long as the bearish structure remains intact.
Overall, while Solana has seen a short-term price bounce and increased on-chain activity, the higher timeframe outlook remains bearish. The recent surge in Open Interest and speculative trading could indicate a bullish turnaround, but the drop in the percentage of addresses in profit suggests that holders may use any price increase as an opportunity to exit at break-even. Traders and investors should keep a close eye on key levels such as $143 for a potential bullish reversal.
