Summary Solana pauses near $145 after strong rebound from December lows. Price remains capped below medium-term resistance near $150. Spot flows and leverage suggest consolidation, not trend reversal. By Parshwa Turakhiya Solana ( SOL-USD ) is trading near the $144-145 area on Wednesday after a sharp recovery from December lows, with price action now shifting from impulse rebound into consolidation. The rally off the $120 region has lost immediate momentum, but the broader structure points to stabilization rather than a renewed breakdown. The latest pullback reflects sellers defending short-term resistance rather than aggressive risk-off behavior. With volatility compressing and participation rising, the market is transitioning into a decision phase where confirmation, not speed, will determine the next directional move. Recovery holds, but trend remains corrective On the daily chart, Solana continues to trade within a corrective structure despite the sharp rebound. Price has reclaimed the 20-day EMA and is attempting to hold above it, a constructive early signal following prolonged weakness. However, the broader trend remains capped by declining medium- and long-term averages. Solana price dynamics (Source: TradingView) The 50-day EMA near $137 and the 100-day EMA around $149 define the current compression zone. While price is now trading above short-term support, it has yet to re-enter the $150-160 region that would signal a more meaningful trend shift. The declining slope of the 100-day EMA reinforces that this move remains a recovery within a larger downtrend rather than a confirmed reversal. Structurally, the rebound from $120 has broken the sequence of lower lows that defined November, but it has not yet produced a higher high on the daily time frame. As long as Solana holds above the $135 area, the recovery structure remains intact. A loss of that level would weaken the base and reopen downside risk toward the $125-130 support band. Momentum indicators support stabilization but warn against chasing strength. Daily RSI has climbed into the low 60s, reflecting improving bullish pressure after extended weakness. This zone often aligns with countertrend rallies unless followed by sustained acceptance above resistance. RSI flattening near current levels suggests upside may pause unless fresh demand enters the market. Short-term control weakens as price compresses Lower-time frame structure shows bulls losing near-term control. On the 30-minute chart, Supertrend has begun to flatten after multiple bullish flips, while parabolic SAR is rotating closer to price. This reflects reduced directional momentum rather than aggressive selling. Solana failed to hold above the $147-148 area, which has now emerged as a clear intraday rejection zone. Sellers have repeatedly stepped in at that level, capping upside attempts. As long as price remains below $148, the short-term bias leans sideways to slightly lower rather than continuation higher. Immediate support sits in the $142-143 region, where buyers have defended recent pullbacks. A sustained break below that zone would expose $138 and then the more critical $135 level. Conversely, a clean intraday reclaim of $148 would improve short-term structure and set up another test of the $150 handle. Flows and leverage limit conviction Spot flow data remains mixed and continues to cap upside conviction. The latest session recorded a modest net inflow of roughly $6 million, but the broader pattern over recent weeks shows persistent distribution during rallies. This behavior suggests larger holders remain cautious, using strength to reduce exposure rather than accumulate aggressively. Derivatives positioning adds nuance to the picture. Open interest has climbed above $8.8 billion alongside higher volume, signaling renewed trader engagement rather than capitulation. Long-short ratios are slightly tilted toward longs but remain balanced enough to avoid immediate squeeze risk. Liquidation data shows heavier long liquidations over the 12- and 24-hour windows, indicating recent pullbacks are shaking out late buyers rather than triggering panic selling. This combination of improving participation but uneven conviction is consistent with range-bound behavior rather than trend acceleration. Levels that define the next move From a technical standpoint, Solana needs a daily close above $150 to confirm a broader recovery phase. Acceptance above that level would open the door toward $160 and the declining 200-day EMA, where the next major test of trend strength sits. Failure to reclaim $150 keeps the market locked in a corrective range, with downside risk rotating back toward $135 if momentum fades. Until price clears trend resistance with confirmation from spot inflows, SOL favors tactical range trading rather than high-conviction directional positioning. In earlier analysis, Solana was flagged as being in a corrective recovery phase following the November breakdown, with rallies expected to face resistance near declining daily averages. Current price action continues to validate that framework as SOL stabilizes but remains capped below levels required to confirm a durable trend reversal. This material may contain third-party opinions; none of the data and information on this webpage constitutes investment advice according to our Disclaimer . While we adhere to strict Editorial Integrity , this post may contain references to products from our partners. Original Post
