Solana has bounced off of a support around $195, and while still down from its all-time highs, the move shows signs of recovery that have caught the interest of traders and analysts alike. After weeks of selling pressure, the cryptocurrency is currently trading around $202.61. Buyers stepped in at critical levels, and many believe this bounce suggests that higher resistance tests will now be seen during September.
The token hit a low of $194 recently and then made its comeback. Since then, Solana has reclaimed the $198 and $200 levels, which indicates renewed trust from the market participants. Volume trends also confirm that the recovery is underpinned by stronger participation.
Momentum is backed by the moving average convergence divergence indicator. The MACD line is now above the signal line indicating that buying interest is faster than selling pressure. Volume has also increased, demonstrating that gains in recent months are not developing in isolation.
Also Read: Solana Surges Despite Pullback: Breakout Around $240 Level
However, on the more extended daily chart, Solana is still confined within an upward channel that was formed since May. Immediate support lies just below $195, and deeper cushions occur at $185 and $175, which coincides with the 50-day and 100-day exponential moving averages.
In the long run, the 200-day EMA at around $169 is the safety net that remains appropriate when momentum starts to lose grip or if a more prolonged downward move is coming.
Source: TradingView
Other indicators further strengthen this positive bias. The parabolic SAR bounced below the price at $196, indicating trend support is back to buyers. RSI oscillates in mid-range territory, suggesting neutral to positive conditions that continue to favor further gains.
Another important pattern in focus is the potential formation of a golden cross pattern on the Solana to Bitcoin chart. Onur said that the 50-day simple moving average shows signs of approaching a 200-day average where a cross could be possible above it. Previous similar formations precede explosive rallies, including a peak of over 1,000% in 2021 and a 340% hike in 2023, adding to expectations of another major movement.
Source: X
Onur also proposed that Solana holding above its major averages and renewed treasury demand for liquidity could have eventually set the stage for Solana to retest the $300 mark: This upside potential has not passed unnoticed, as traders are positioning for additional upside potential.
According to Coinglass, there were $14.06 million in net inflows on Sept. 2, the most robust positive reading in several weeks. Cumulative inflows above $200 are indicating accumulation from the whales before they decide to make a move and break out. Such long-term support is indicative of a belief in Solana as playing a leading role in the coming market rotation.
Source: Coinglass
Overall, the outlook is cautiously optimistic. A firm crossing above $217 would probably put it on a path towards $230 and possibly into $240. However, if the tokens are left unprotected from drops, they would start to decrease towards $185 or $175.
Also Read: Solana Prepares to Outpace Sui with New Alpenglow Consensus Protocol
Also read: Bitcoin’s Biggest Holders Aren’t ETFs – It’s the Whales Selling
