Solana (SOL) is showing renewed strength as it rebounds above the key $150 mark, sparking optimism among traders and investors. This recovery comes as global market sentiment improves, partly fueled by the latest round of US-China trade talks, which has lifted the broader crypto market mood.
Steady Recovery and Key Levels to Watch
After a sharp drop last week, Solana has managed to post four consecutive days of gains, currently trading around $154. This move not only recovers ground lost during the recent sell-off but also reestablishes $150 as a crucial psychological and technical support. Over the past month, SOL has consistently held above $142, which aligns with the 23.6% Fibonacci retracement level, drawn from its January high of $261 to its April low of $105.
If Solana can close above $157—the highest closing price in the past week—analysts see potential for the rally to extend toward $180 and possibly $183, which matches the 50% Fibonacci retracement level. However, a failure to maintain momentum above $157 could see SOL retesting support at $142, and a break below $140 might open the door to a deeper correction toward $105 .
Technical Indicators Signal Cautious Optimism
On the technical front, the Relative Strength Index (RSI) has bounced from oversold territory and is now at 45, suggesting that bearish pressure is easing. For a stronger bullish signal, traders are watching for the RSI to cross above the midpoint. Meanwhile, the Moving Average Convergence/Divergence (MACD) is close to flashing a buy signal, with the blue line nearing a crossover above the red line. A move above the zero line would further confirm bullish momentum.
Derivatives Market Shows Bullish Shift
Solana’s recovery is also reflected in its derivatives market. Open Interest (OI) in SOL futures has risen by 2.2% in the past 24 hours, reaching $6.55 billion, indicating increased capital inflow. The funding rate has turned positive, showing that bullish traders are willing to pay a premium to maintain their positions. Notably, short liquidations have surged to $5.12 million, compared to $1.77 million in long liquidations, highlighting a shift in favor of bullish sentiment.
The Long/Short Ratio for SOL stands at 1.39 over the past four hours, with 58% of trading volume coming from long positions. This further underscores the growing confidence among traders betting on higher prices.
What’s Next for Solana?
Looking ahead, Solana’s ability to hold above $150 will be critical. A sustained move above $157 could pave the way for a test of $180–$183, while a drop below $142 would signal caution. As long as SOL maintains its current uptrend and broader market sentiment remains positive, the outlook for June remains cautiously bullish, with price targets between $150 and $195 .
For those tracking Solana, keep an eye on key technical levels and market sentiment indicators. The next few days could be pivotal in determining whether SOL’s recovery is the start of a new uptrend or just a temporary bounce.
