Solana (SOL) trades at $78, maintaining its recovery following a rebound from lows near $74 on July 18. The cryptocurrency has climbed approximately 5% from its recent bottom, but remains capped below the overhead resistance of $82 to $84, an area that restricted upward momentum earlier in July.
Key technical levels and bullish signals
SOL currently sees intraday trading between $77.42 and $78.88, staying just under the $80 mark that many traders view as a crucial breakout level. A consistent daily close above $80 would open the path toward July’s swing highs around $82.50 to $84. If this level is cleared, technical targets shift upward to $90 and then to the previous range top near $97.60.
On the 4-hour chart, SOL holds above four major moving averages: $75.55, $76.42, $77.01, and $77.60. This alignment suggests buyers maintain near-term control despite some moderation in upward momentum.
The Moving Average Convergence Divergence (MACD) currently remains above its signal line, reinforcing a short-term bullish outlook, though momentum looks to be flattening.
Crypto analyst Michaël van de Poppe described the current structure as “holding the range low,” adding that it may be just a matter of time before SOL targets $120. He continues to express a bullish outlook, even with the recent period of consolidation.
Short interest and liquidation zones
Data from liquidations tracking platform CoinGlass highlights significant concentration of short positions at $78.50, $79.20, and $80.60. A move above $79 could trigger notable short liquidations, compelling a squeeze and providing momentum for SOL to climb past $81.
Meanwhile, the Chaikin Money Flow indicator stands at -0.02, slightly below neutral. This reading indicates capital inflows have yet to fully confirm the recent uptick in price, suggesting that higher trading volumes will be necessary to drive further gains.
Trader Daan Crypto Trades described SOL as being at a “key high timeframe region,” indicating that the next move will depend on the bulls’ ability to break through toward the $90 range, or risk a pullback into the mid-$60s.
Mini dictionary: Chaikin Money Flow (CMF) is a technical analysis indicator that uses price and volume data to gauge the buying and selling pressure of a security. Values above zero indicate buying pressure, while values below zero signal selling pressure.
| Level | Significance |
|---|---|
| $75.55 | Support, moving average |
| $78.50–$80.60 | Short liquidation zone |
| $80 | Critical breakout resistance |
| $82–$84 | Next resistance |
| $90–$97.60 | Further upside targets |
| $72.50–$67 | Potential downside if support fails |
Impact of BONK treasury exploit
Sentiment within the Solana ecosystem took a hit after a governance exploit targeted the BonkDAO treasury, leading to the loss of approximately $20 million. The individual behind the attack invested around $4.4 million in acquiring BONK tokens, which allowed them to pass a malicious proposal that drew overwhelming approval in a manipulated governance vote. This incident left Solana’s core blockchain untouched, but exposed vulnerabilities in decentralized decision-making across major Solana-based projects.
Mini dictionary: BonkDAO is a decentralized autonomous organization responsible for managing the treasury and governance of the BONK meme coin ecosystem on Solana, enabling token holders to participate in governance through voting.
On a broader scale, external factors have also influenced SOL’s performance. Brent crude oil reached $91.01 following renewed geopolitical tensions between the United States and Iran, which pushed the US dollar index up to 101.16. A stronger dollar typically reduces the appetite for risk assets, including cryptocurrencies like Solana.
Still, Solana’s position in regulated markets strengthened when US spot Solana exchange-traded funds attracted $8.36 million in net inflows on July 6, their best single-day performance in nearly two months. No outflows were registered for the week, reflecting ongoing institutional interest.
If the $75.55 support level weakens, SOL could retreat toward $72.50 and possibly revisit the June low near $67.
