Solana price recovery suggests a breakout rally to $165 as bullish sentiment surges in the derivatives market.
With an intraday recovery of 3.89%, Solana aims to flip the $130 mark. After bouncing back from the $125 demand zone, Solana is currently trading at $129.
The SOL price trend points to a potential breakout rally as the broader market shows signs of a recovery in the week ahead. Will Solana overcome a long-standing resistance trendline and push toward $165?
Solana Price Analysis
On the daily chart, Solana’s price action shows a bullish reversal from the $125 support zone. After two consecutive Doji candles, a bullish engulfing candle completes a morning star pattern.
Currently trading at $129, Solana is preparing to challenge the overhead resistance trendline near the $135 mark. The local resistance trendline and the parallel support trendline form an expanding falling channel pattern, with an early reversal within the pattern.
Rising Active Addresses to Drive Solana Network Growth?
As Solana gradually gains bullish momentum, the number of daily active addresses on the network has seen a significant recovery. Over the past two weeks, the number of active addresses has jumped from 2.77 million to 3.3 million.
This marks a notable recovery, hinting at a potential resurgence in active addresses. Furthermore, the number of transactions on the Solana network has experienced sharp changes.
In February, the number of non-vote transactions stood at 1.62 billion, while vote transactions increased to 8.2 billion. This reflected a network slowdown compared to January.
However, in March, the number of vote transactions jumped to 8.77 billion, with the non-vote transactions taking a minor hit to 1.54 billion.
Solana Futures See Bullish Sentiment Spike
With the short-term recovery, trader interest in Solana Futures has increased significantly. Open interest has risen by 1.88%, reaching $4.88 billion.
Additionally, the long-to-short ratio over the past 24 hours has neutralized at 1.0121. With increasing trader interest, the funding rate has flipped positive, rising to 0.0034%. These shifts in the derivative data reflect a gradual growth in bullish sentiment.
Solana Breakout Rally Price Targets
With a slight uptick in bullish sentiment and a surge in network activity, Solana could soon witness a breakout rally. Based on the pivot point indicator, Solana’s immediate resistance is at the center pivot level of $138. A quick retest of the breakout could follow, with a rally toward the R1 resistance level at $165.
On the flip side, Solana’s key support remains at the $125 support zone, followed by the $112 swing low. According to the pivot levels, Solana’s S1 support level stands at $97.69.
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