Solana's Price Surges 20% as Bullish Momentum Returns
1min read Solana (SOL) has experienced a significant rebound in the past week, with its price surging by approximately 20%. This recovery follows a dip to a low of $96, driven by broader market sell-offs due to macroeconomic uncertainty. The token has since climbed back above key resistance levels, currently trading around $134, indicating a return of bullish momentum and growing investor confidence.
Market sentiment has shifted in favor of the bulls, with nearly 72% of traders on Binance holding long positions on SOL. This strong bullish sentiment suggests expectations of a sustained rally. The recent launch of the world’s first Solana spot ETF (CSOL) on the Toronto Stock Exchange has also provided a significant catalyst for Solana’s price action. This ETF, launched by Purpose Investments, offers secure and compliant access to Solana, potentially mainstreaming its exposure across North American financial markets.
Technically, Solana is at a critical juncture. According to top crypto analyst Crypto Seth, if SOL can break above the $147 level, it could confirm a trend shift and trigger a potential recovery rally. Reclaiming the $132-$135 range is crucial for confirming short-term momentum. To establish a higher high and shift the current downtrend structure, SOL must push decisively above the $150 level. This area has served as a strong rejection point in previous attempts, and a clean breakout could open the path toward higher targets and renewed investor confidence.
On-chain activity supports the bullish case for Solana. Staking deposits on the network surged by 2 million SOL, approximately $270 million, between April 13 and April 17. This increased staking effectively removed a large amount of supply from circulation, supporting upward price pressure during periods of high market demand. The recent repeal of restrictive DeFi regulations has also ignited demand for altcoins like Solana, positioning it as a scalable, low-cost alternative to Ethereum, which faces challenges from high gas fees and divisive upgrades.
Solana has now reclaimed the 50-day Simple Moving Average ($130.09), establishing it as short-term support. The Relative Strength Index (RSI) at 55.59 shows rising momentum but remains below overbought levels. If bulls fail to defend the $125 support level, Solana may risk a drop back to lower demand zones around $100. Macroeconomic uncertainty and continued trade tensions between the U.S. and China remain factors that could weigh on SOL’s price. For now, traders are watching key resistance levels closely. A breakout above $135 and then $147 could shift the tide decisively in Solana’s favor.
