Solana (SOL) has recently formed a V-shaped recovery on the weekly chart, indicating a possible surge to $295 if it can overcome key resistance levels. Currently priced at $156 and having declined by 3% over the last 24 hours, SOL has been struggling to maintain its value after peaking at $174 last week. Analysts highlight a looming short squeeze worth $149 million, which could catalyze a price increase if SOL reaches $159. The bearish momentum appears to be decreasing, as indicated by the decreasing intensity of red bars on the Awesome Oscillator (AO), which flips green, suggesting a bullish divergence.
Despite this upside potential, SOL faces significant resistance between $179 and $203. Success in surpassing these levels could pave the way for further gains, with analysts like those at CoinGape providing forecasts that anticipate a rally to $200. The Relative Strength Index (RSI) currently sits below 50, signaling traders' hesitancy at the current resistance. Furthermore, a substantial transfer of $441 million worth of SOL to exchanges raises concerns of a possible sell-off before rallying further.
Market data reveals the short liquidation risk at the $159 price level signifies a strong bullish potential once triggered, as buyers may step in following any short position closing. The combination of a V-shaped recovery and impending short squeeze points towards a critical moment for SOL holders and potential investors.
Despite this upside potential, SOL faces significant resistance between $179 and $203. Success in surpassing these levels could pave the way for further gains, with analysts like those at CoinGape providing forecasts that anticipate a rally to $200. The Relative Strength Index (RSI) currently sits below 50, signaling traders' hesitancy at the current resistance. Furthermore, a substantial transfer of $441 million worth of SOL to exchanges raises concerns of a possible sell-off before rallying further.
Market data reveals the short liquidation risk at the $159 price level signifies a strong bullish potential once triggered, as buyers may step in following any short position closing. The combination of a V-shaped recovery and impending short squeeze points towards a critical moment for SOL holders and potential investors.
