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- SOL bounced from a key support confluence with oversold momentum signals.
- Whales and retail traders are both accumulating at current levels.
- Breaking above $206 could trigger the next bullish leg for Solana.
Solana (SOL) is flashing strong bullish signals after rebounding from a critical confluence zone — an overlapping ascending trend-line support and the golden Fibonacci retracement range of 0.618–0.7. This combination often marks an area where trend reversals take shape.
Adding to the technical optimism, the Stochastic RSI was in oversold territory at press time, suggesting SOL may have found a local bottom. Historically, a reset in momentum indicators following a support bounce has preceded sharp upward moves in trending markets.
Whales and Retail Investors in Sync
On-chain data strengthens the bullish case. According to CryptoQuant, whale addresses have been quietly building positions at the current trading range. At the same time, retail traders — particularly those placing orders under $1 million — have shown a surge in buying activity, as reported by Hyblock.
This alignment between whales and smaller investors is noteworthy. When both segments accumulate simultaneously, it often signals strong underlying demand that can fuel sustained price appreciation.
Eyeing the $206 Breakout
The next critical resistance for SOL sits near $206, a level where sellers previously gained the upper hand. A clean break above this price could open the door for further upside, especially if the current accumulation trend holds.
While broader market sentiment and Bitcoin dominance remain influential, Solana’s own technical and on-chain metrics point toward growing bullish pressure. If whales continue to provide strong bid support and retail inflows maintain momentum, SOL may have the fuel needed to challenge — and possibly surpass — its recent high.
Outlook
With technical indicators signaling a rebound and on-chain data revealing coordinated accumulation, Solana appears to be positioning for another leg up. A decisive move past $206 could confirm the breakout and set the stage for a stronger rally in the weeks ahead.
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 Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Solana (SOL) & Polygon (POL): Your 2025 Guide to Maximize DeFi Yields with Staking & Bridging
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
