Solana (SOL) has been making waves recently, experiencing a notable recovery in the broader cryptocurrency market. After a 4.24% price surge, the token surpassed the $175 mark, signaling a potential shift in momentum. Solana had previously faced a significant downturn, dropping from the $260 resistance zone by nearly 35%. However, with this recent price movement, Solana has once again positioned itself for a possible breakout. Now, all eyes are on the crucial $180 resistance zone to see if it can continue its upward trajectory.

Price Action Signals Potential Reversal

Looking at the daily chart, Solana’s price trend has formed a significant retracement, dipping to the 23.6% Fibonacci level at $159.47. Despite this sharp drop, the price has been showing signs of recovery. A bullish engulfing candle formed on the chart yesterday, indicating that SOL may be on the brink of a reversal. This is further supported by the appearance of a Morning Star pattern, which is often a strong signal of a trend reversal.

The current price of Solana is hovering just above the 38.2% Fibonacci retracement level, signaling that the token may be retesting the previous support zone. However, the key level to watch is $180. This level is considered a strong resistance, and if Solana can break through this barrier, it could set the stage for a significant rally.

Technical Indicators Point to Strength

In addition to the price action, technical indicators are beginning to show promising signs for Solana. The Chaikin Money Flow Index, which measures the accumulation and distribution of a cryptocurrency, is nearing the zero line, suggesting that buying pressure is on the rise. If the index turns positive, it could further signal a bullish shift in the market.

Moreover, moving averages and oscillators on shorter timeframes are also indicating bullish trends, with key levels suggesting further potential upside. However, it’s important to note that while short-term technicals are turning positive, the longer-term outlook still points to selling opportunities until the breakout above $180 is confirmed.

Whale Accumulation Bolsters Bullish Sentiment

A particularly interesting factor contributing to Solana’s potential rally is whale activity. Over the past four days, a prominent Solana whale has acquired a staggering 174,767 SOL tokens, worth approximately $29.87 million. This purchase demonstrates strong confidence in the future price of Solana, and the whale has also staked these tokens, further reducing the circulating supply and potentially supporting the price.

Whale accumulation typically signals positive sentiment and could act as a catalyst for further price growth, especially if the larger investor base follows suit.

Can Solana Break $180 and Reach $200?

If Solana manages to break through the $180 resistance, the next major hurdle is the 61.8% Fibonacci level at around $204. The psychological significance of the $200 mark could further bolster buying pressure and contribute to a rapid price increase. Should this breakout happen, Solana may be on track for a V-shaped recovery, moving back toward the $260 price zone, which was previously a supply zone.

However, there is a crucial support level to watch. If Solana fails to hold above the $159.47 mark, it could face a deeper correction, potentially testing the $150 psychological support level.

Conclusion

Solana’s recent bullish momentum suggests that it could soon experience a breakout above $180, opening the door for further gains. The combination of a positive technical outlook, whale accumulation, and an optimistic market sentiment sets the stage for a potential rally. If Solana can break through these resistance levels, a climb toward $260 may be within reach. However, traders should remain cautious, as the token must maintain support above key levels to ensure that the bullish trend continues.