Solana (SOL), the popular layer-1 blockchain token, is staging a sharp recovery after falling to a 12-month low earlier this month. Following a dip to $95.23 on April 7, SOL has bounced back by over 17%, trading around $124.58 at the time of writing.

This renewed bullish momentum coincides with a broader crypto market rebound, helping SOL find fresh support and reigniting bullish sentiment among traders.

SOL’s Strong Rebound and Technical Outlook

After bottoming out at $95, Solana has formed an ascending trend line, indicating that buyers are stepping in consistently at higher price points. This pattern is a key bullish signal, reflecting growing confidence in the asset’s recovery.

An ascending trend line is created when an asset posts consecutive higher lows, reinforcing the idea that buyers are becoming more aggressive and willing to pay a premium over time. It acts as a dynamic support level and is often seen as an early sign of trend reversal.

Supporting this bullish case is the Relative Strength Index (RSI), which currently sits at 49.58—just shy of the neutral 50 level. The RSI measures buying and selling momentum, and a move above 50 would suggest increasing upward pressure. An RSI that trends higher from below 50 typically indicates a transition from bearish to bullish market conditions.

Key Levels to Watch: $120 Support and $138 Resistance

SOL’s current rally has brought it back above the $120.74 support level, reinforcing it as a key zone for buyers. As long as this level holds, Solana is likely to maintain its upward trajectory, with short-term price targets near $130 and potentially extending to $138.41.

This $138 zone marks a critical resistance level from earlier in the year and could be a strong test of market strength. If Solana can breach and close above it, it could unlock a more significant upward move, particularly if broader market sentiment remains positive.

However, if selling pressure returns—particularly from traders seeking to take profits from the recent 17% bounce—SOL could drop below $120. A breakdown of this level could send the altcoin back toward its recent low near $95.

Market Sentiment and Broader Outlook

Solana’s strong bounce is part of a larger crypto market recovery this week, fueled by renewed optimism around altcoins and a slight risk-on shift among traders. After a tough Q1, Solana’s network remains among the most active in terms of NFT trading, decentralized finance (DeFi), and developer engagement—factors that continue to support long-term investor interest.

Market analysts suggest that if macroeconomic conditions remain stable and regulatory clarity improves, SOL could see a sustained recovery, particularly given its relatively undervalued position compared to earlier 2024 highs.

Still, short-term volatility remains a concern, and traders will be watching key price levels closely.

Conclusion

Solana’s recent 17% rebound has lifted it out of a 12-month low and back into bullish territory. With the RSI trending higher and an ascending trend line forming, technical signals support the case for further gains—potentially toward the $138 level.

However, a break below the $120.74 support could stall this momentum and send the token back to retest its April lows. As always, traders are advised to monitor volume and price action closely.