Solana (SOL), one of the top digital assets in the crypto space, has seen a significant bounce this past week. After falling to a recent low of around $95, the price has rebounded sharply, climbing 36% and touching the $130 mark. This sharp upward movement has injected fresh optimism into the market, especially for investors who have been waiting for signs of recovery.

The surge has been fueled by renewed activity across the Solana network. A rise in wallet activity indicates that more users are interacting with the blockchain. Whether it’s through trading, staking, or using decentralized applications built on Solana, this spike in activity suggests growing confidence in the ecosystem.

From a technical standpoint, the recent bounce has pushed SOL back above a key horizontal level near $114 — a region that previously acted as strong support throughout 2024. Reclaiming this zone is a positive sign, but for a more convincing trend reversal, the token needs to push past the $130–$143 range.

This upper resistance band, especially the $143 level, has served as a critical zone in Solana’s recent price history. It marks the most recent lower high on the chart, which means that a breakout above this point could signal a shift in market structure from bearish to bullish. If Solana fails to break through this level, however, the bounce may be short-lived, and the asset could return to retest support levels below $100.

In parallel with the price increase, open interest in Solana-based derivatives has also climbed significantly. Open interest refers to the total number of outstanding futures contracts that haven’t been settled. A rise in this metric usually means that traders are placing more bets on future price movements, often indicating higher volatility ahead.

The combination of rising prices and open interest can be bullish — but it also brings risk. If the rally is primarily driven by speculative leverage rather than organic demand, it could lead to sudden corrections when traders start to unwind their positions.

A closer look at investor behavior also reveals caution. Many Solana holders bought during previous market highs and are still underwater. As the price rises toward their entry points, some may look to sell and exit with minimal losses, putting downward pressure on the token. This is especially likely around key resistance levels like $130 and $143.

That said, there are positive signs that shouldn’t be ignored. The increase in active wallets and long positions across exchanges shows genuine interest in the asset. More importantly, it indicates that both retail and larger investors — often called whales — are returning to the market.

The current trend paints a mixed picture. On the one hand, Solana has made a strong weekly recovery, fueled by rising demand and increased user activity. On the other hand, its longer-term chart still shows a series of lower highs and lower lows — a hallmark of a bearish trend.

To truly confirm a breakout, Solana needs to close above $143 with solid volume and maintain momentum in the days that follow. If that happens, the next target could be around $160, and the mood in the broader crypto market could become more bullish.

If the token is rejected at resistance, however, it could revisit previous support levels at $99 or even $85, especially if the overall market sentiment weakens.

In conclusion, Solana’s recent price jump has given investors a reason to be hopeful. But whether it signals the beginning of a longer rally or just a temporary bounce depends on how the asset performs in the crucial $130–$143 zone. Until then, cautious optimism remains the most sensible approach.