Solana Surges 3% Daily, 40% Monthly as Whales and Activity Boost Momentum

Solana's market momentum is accelerating as on-chain activity, staking interest, and whale inflows paint a bullish narrative for the layer-1 giant. Solana continued its upward climb, trading at $138.13 at press time, after a 3.00% daily gain. Naturally, this extended its monthly surge to over 40%, showing growing momentum across the board. After several weeks trapped in a descending channel, SOL has broken out and was trading just below a strong resistance zone between $138 and $145. This area previously acted as a major supply zone, and bulls are now attempting to flip it into support. The breakout structure suggests a reversal may already be underway, supported by consistently higher lows and rising volume. However, confirmation requires a decisive daily close above $145, which could trigger an extended rally toward the next major resistance at $180. Considering the previous rejections in this region, the current retest is a pivotal moment for Solana’s short-term trajectory.

Of course, the price action wasn’t moving in isolation. Large-scale movements have validated the shift in sentiment. Galaxy Digital withdrew 606K SOL, worth $79.7M, from exchanges and staked 462K SOL ($60M), reinforcing long-term conviction among institutional players. Additionally, network metrics show significant growth, with 29 million active addresses recorded—a 17% increase—and 374 million total transactions, surpassing all other chains combined. Furthermore, DEX volumes hit $2.27 billion daily, overtaking Ethereum [ETH], while transaction fees surged 42% to $7.67 million. This rise in on-chain demand reflects not only increasing user adoption but also expanding utility across Solana’s DeFi and NFT ecosystems, which collectively enhance the sustainability of the current uptrend.

While spot market momentum strengthens, derivatives data shows traders remain cautiously optimistic. Open Interest jumped 10.71% to $5.57 billion, while Options Volume soared 164.97% to $2.55 million, indicating growing interest in directional plays. However, total volume fell 31.89%, and Options Open Interest dropped 15.20%, suggesting that traders are participating selectively, possibly hedging positions or awaiting confirmation. This hesitation aligns with the critical nature of the $145 resistance level.

Liquidations offered further insight. Short liquidations reached $5.57 million, compared to just $81.9K in long positions, signaling that sellers were caught off guard during the recent rally. This imbalance reveals strong upward pressure, possibly fueled by a short squeeze. However, Funding Rates have remained neutral to slightly negative, showing that while prices are rising, many traders still hesitate to enter aggressive long positions.

Put simply, Solana stood at a critical juncture. Its bullish structure was backed by strong technicals, whale conviction, and surging on-chain utility. However, the $145 resistance zone remained both a psychological and technical barrier. Should bulls succeed in flipping it into support, SOL could be primed for a swift move toward $180. Until then, the market hovered at an inflection point—buyers gaining ground, but still needing confirmation to assert dominance.