Solana’s Price Recovery Indicates a Breakout Rally in Bullish Sentiment in the Derivatives Market Reaching $165
During the intraday session, the recovery rate stood at 3.89%, with Solana aiming to flip $130. After bouncing from the demand zone at $125, Solana is currently trading at $129. The price trend of SOL points towards a potential breakout rally, as the broader market shows signs of recovery in the coming week. Will Solana overcome the long-term resistance trend line and push towards $165?
Solana Price Analysis
On the daily chart, Solana Price Action demonstrates a bullish reversal at the support zone of $125. Following two consecutive Doji candles, a bullish engulfing candle completed a morning star pattern.
Solana Price Chart
Currently, Solana is trading at $129, preparing to challenge the overhead resistance trend line at $135. The local resistance trend line and the parallel support trend line form an expanding descending channel pattern, showing early signs of reversal within this pattern.
Rising Active Addresses Driving Solana Network Growth?
As Solana gradually gains bullish momentum, the number of daily active addresses on the network has significantly recovered. Over the past two weeks, the number of active addresses has increased from 2.77 million to 3.3 million.
Solana Active Addresses
This marks a notable recovery, suggesting potential responsiveness within the active addresses. Furthermore, there has been a dramatic change in the number of transactions on the Solana network. In February, the number of non-voting transactions was 1.62 billion, while voting transactions increased to 8.2 billion, reflecting a slowdown in the network compared to January. However, in March, the number of voting transactions surged to 8.77 billion, with non-voting transactions totaling 1.54 billion.
Solana Futures Witness Surge in Bullish Sentiment
With the short-term recovery, traders have significantly increased their interest in Solana Futures. Open interest rose by 1.88%, reaching $4.88 billion. Additionally, the long-term ratio over the past 24 hours has been neutralized at 1.0121. As trader interest rises, the funding rate has turned positive, increasing to 0.0034%. These changes in derivative data reflect a gradual rise in bullish sentiment.
Solana Derivatives
Solana Breakout Rally Target
With a slight uptick in bullish sentiment and a surge in network activity, Solana is poised to witness a breakout rally soon. Based on the pivot point indicator, immediate resistance for Solana is at the central pivot level of $138. A subsequent quick retest of the breakout towards the R1 resistance level of $165 is possible. On the downside, key support for Solana remains at the support zone of $125, followed by the swing low at $112. According to the pivot levels, the S1 support level for Solana is at $97.69.
