Solana recovers from $119 – What is the next move for SOL?

Solana’s recovery continued gaining momentum on December 29, with the asset recording its fourth consecutive bullish day after bouncing off a critical support zone. During the session, SOL experienced a 2.45% increase, aligning with the overall improvement in market sentiment. At the time of publication, Solana was trading near $127.5 with the same 24-hour gain. Notably, there was a surge in trading activity accompanying this movement.

Expanding volume indicates renewed interest in SOL

Volume data painted a picture of intensified market participation. The 24-hour trading volume jumped 161% to reach $4.15 billion, a clear indicator that market participants were reevaluating their positions around the SOL price. This level of trading flow suggests that the interest was not merely speculative but reflected a deeper conviction about Solana’s short-term direction, despite conflicting technical signals.

Technical analysis: Indicator dynamics in uncertain territory

The daily chart revealed that SOL successfully bounced after touching the support zone again at $119, a level that has acted as a price floor over the last four trading sessions. According to price structure analysis, if consolidation remains above this support, a move toward $145 could be feasible, representing a potential gain of 13.8%.

The Average Directional Index (ADX) reached 25.62, right at the 25 threshold, suggesting that the directional trend is gaining strength. However, this bullish reading contrasts with the Chaikin Money Flow (CMF), which remains in negative territory at -0.13. This divergence indicates that, although the price shows momentum, selling pressure remains dominant and buyer interest at current levels remains weak.

Social media analysts did not hesitate to express ambitious projections: some suggest that SOL could reach $144 or even $147 in the short term, while others propose that breaking the barrier of $150 is a realistic possibility in the coming days.

The gap between expectations and actual positioning

Despite optimism circulating among certain market segments, the liquidation picture reveals a completely different scenario. The main support and resistance points are located at $122.2 and $130.4, respectively, where the highest liquidation activity is concentrated.

At these strategic points, traders have accumulated long positions leveraged by $114.12 million, while the short side has reached $149.74 million. This composition clearly indicates a bearish bias among intraday traders, who apparently doubt that SOL will surpass $130.4 in the immediate term.

Key conclusions of the movement

Solana’s rebound has demonstrated that there is momentum and a renewed willingness among participants after successfully defending the key support. However, whether this strength persists will crucially depend on how the price action evolves as it approaches resistance, where leverage remains significantly concentrated. The divergence between the bullish sentiment of experts and the defensive stance of leveraged traders suggests that the upcoming sessions will be decisive in defining the medium-term direction.