Solana's SOL Surges 8% as Treasury Secretary's Statement Boosts Crypto Market

Solana's native token, SOL, has shown signs of shifting from a bearish to a bullish market sentiment following a recent price decline. On April 4, 2025, the overall crypto market experienced an impressive rally after Treasury Secretary Scott Bessent's statement that "Bitcoin is becoming a store of value."

SOL has seen an 8% price surge in the past 24 hours, currently trading near $123. Despite a 9% drop in trading volume during the same period, the market continues to maintain an upside rally following Bessent’s statement. This momentum was recorded as SOL’s price retested its crucial support level of $114.

Technical analysis indicates that SOL is forming a bullish double-bottom price action pattern on the daily time frame. However, the pattern is incomplete, with the daily chart showing a single leg with two bottoms at the key horizontal support level of $114. Additionally, SOL’s daily chart has formed a bullish divergence, suggesting a potential massive upside rally.

Based on recent price action and historical momentum, if SOL’s price remains above the $114 level, there is a strong possibility it could soar by 18% to reach the $144.5 level, or even higher in the future. This shift in sentiment and the strength of SOL’s upside momentum are putting $11.5 million worth of short positions at risk of liquidation, as reported by the on-chain analytics firm Coinglass.

Data reveals that traders are currently over-leveraged, with key levels at $121.3 on the lower side and $124.1 on the upper side, holding $31.45 million and $11.50 million worth of long and short positions, respectively. While examining the on-chain metrics, it appears that the bulls are back and currently dominating the asset.

Solana (SOL) is showing strong technical and on-chain signals, indicating a potential breakout toward the $145 level. This optimistic outlook is contingent on the cryptocurrency maintaining its position above the $114 support level. The current price of SOL/USDT is $121.63, and the Relative Strength Index (RSI) suggests an oversold market sentiment. Additionally, SOL has reached a major support level, an area where buyers have previously shown strong interest, suggesting that the $160 mark could be within reach.

The technical indicators, such as the Moving Average Convergence Divergence (MACD), further support the bullish sentiment. The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. When the MACD line crosses above the signal line, it is typically a bullish indicator, suggesting that the price of the asset is likely to increase. In the case of SOL, the MACD line has recently crossed above the signal line, adding to the optimism surrounding its potential price movement.

The on-chain signals also provide a positive outlook for SOL. On-chain data refers to the information that is recorded on the blockchain, such as transaction volumes, active addresses, and network activity. Analysts often use this data to gain insights into the health and activity of a cryptocurrency network. In the case of SOL, the on-chain data suggests that there is strong network activity and growing interest in the cryptocurrency, which could contribute to its price appreciation.

However, it is important to note that the cryptocurrency market is highly volatile and unpredictable. While the technical and on-chain signals for SOL are currently bullish, there is no guarantee that the cryptocurrency will reach the $145 level. Investors should exercise caution and conduct their own research before making any investment decisions. Additionally, it is important to keep in mind that past performance is not indicative of future results, and that the cryptocurrency market is subject to a wide range of factors that can impact price movements.