Solana (SOL) has shown signs of a potential recovery after recently falling below the $190 mark. With its market capitalization now approaching $97 billion, Solana is seeing a resurgence in investor interest. The cryptocurrency is attempting to regain the $200 level, buoyed by increasing whale activity and promising technical indicators, such as the potential formation of a golden cross—a pattern often associated with bullish price movements. While these signs are encouraging, the question remains whether Solana can sustain this momentum or face further challenges.

Whale Activity: A Key Indicator of Market Confidence

Whales, or large investors holding significant amounts of a cryptocurrency, have a notable impact on price movements. For Solana, whale activity has been an important signal for potential price shifts. Recently, the number of whale addresses—defined as wallets holding at least 10,000 SOL—has fluctuated. On February 4, whale addresses stood at 5,131, but by February 11, this number dropped to 5,053, following an all-time high of 5,167 addresses on January 25. This decrease suggested that some large holders were offloading their positions, creating selling pressure and contributing to Solana’s price decline.

However, the situation appears to be stabilizing. After hitting a low of 5,053 whale addresses, the number has started to rise again, currently sitting at 5,090. This gradual increase in whale activity may point to a cautious return of confidence from big investors, suggesting that they may be starting to rebuild their positions. If this trend continues, it could provide the support Solana needs to push its price higher.

Technical Indicators Suggest a Potential Reversal

Beyond whale activity, Solana’s Directional Movement Index (DMI), a technical indicator used to assess market trends, is showing signs of a potential shift in direction. The Average Directional Index (ADX), which measures the strength of a trend, recently dropped from 22.2 to 18.7. A declining ADX typically signals a weakening trend, suggesting that the previous downward pressure on Solana may be losing strength.

At the same time, the +DI (positive directional index) has risen from 11.3 to 19, while the -DI (negative directional index) has fallen from 26.4 to 19. These movements suggest that buying pressure is starting to outweigh selling pressure, which could signal the beginning of an upward trend. If the positive momentum continues, Solana could experience a shift toward a more bullish phase, paving the way for further price gains.

Solana’s Push for $200

Currently, Solana is focusing on breaking through the critical $200 resistance level. This psychological threshold is a key point for traders and could trigger a new wave of buying activity if breached. The cryptocurrency is also on the brink of forming a golden cross, a technical pattern where a short-term moving average crosses above a long-term moving average, often seen as a sign of impending price increases.

If the golden cross forms, Solana could test the $209 level, with further gains potentially pushing the price toward $219.9. A successful breakout above this level would set the stage for a more significant rally, possibly taking Solana back to its previous highs.

Support Levels and Risk Factors

Despite the positive signs, there are risks to consider. If buying pressure fails to continue, Solana could face another pullback. Key support levels at $187 and $175.8 will be crucial in protecting against deeper declines. If these support levels break, Solana could face more significant downward pressure.

Conclusion: Will Solana Continue Its Recovery?

Solana is in a pivotal stage as it attempts to reclaim the $200 mark, supported by whale accumulation and bullish technical signals. The formation of a golden cross and rising whale activity suggest that Solana could see a period of growth, potentially testing higher levels like $209 or $219. However, continued buying pressure will be necessary to sustain this momentum. The coming days will be crucial in determining whether Solana can continue its recovery or face another period of stagnation.