Solana [SOL] Drops 2.61% But Bullish Trends Persist

Solana [SOL] experienced a 2.61% drop on the 1st of July, which trimmed some of its weekly gains. However, market insights suggested that this dip might be temporary. Wallet balances significantly increased, accumulation remained strong, and price action showed bullish tendencies.

The number of addresses with a balance of at least 0.1 SOL hit an all-time high of 11.44 million on the 28th of June. This surge coincided with a jump in SOL’s price to $150.76, indicating growing grassroots confidence in the cryptocurrency. The sustained outflows from centralized exchanges, totaling $525.32 million as of the 1st of July, further supported the idea of a potential supply squeeze, where demand exceeds supply, potentially leading to a price surge.

Futures investors joined spot investors in signaling bullish sentiment. There was a notable surge in Open Interest across both options and futures markets. SOL futures volume shot up 88.74% to $20.24 billion, while futures open interest climbed 4.14% to $7.22 billion. Options markets also saw bullish traction, with options volume rising 37.27% and options open interest jumping 17.76%. The Taker Buy/Sell Ratio confirmed this bullish sentiment, with buying activity being dominant and the metric reading above 1. The broader market showed a reading of 1.0012, while traders on Binance and OKX were even more bullish, with readings of 1.9842 and 2.16, respectively.

In the short term, SOL was trading within a bullish triangle pattern and had breached its immediate resistance, putting SOL a step away from a major breakout. If the price bounces off key support levels at $144.87 or $139.88, it could retest the $184.88 mark, nearly 27% upside from the current level. On the medium-term outlook, SOL traded within a similarly bullish structure, but with higher price targets. In this scenario, SOL has yet to break the descending resistance line, having faced rejection at that level. A successful breakout would likely send SOL to three key targets: $181.46, $203.98, and $244.00. Given the price movement and slight decline, a move into the demand zone, followed by a breach of the resistance line, could spark a broader rally toward these targets.