Solana (SOL) is trading near $117.38, rebounding impressively from its recent lows. As SOL tests the significant $118 to $120 resistance zone, investors are monitoring whether growing momentum will generate a major breakout or result in another consolidation phase.
Golden cross formation approaches for Solana
Technical analysis shows that Solana’s price has climbed above its 200-week moving average after an extended corrective period and is approaching another key moving average. With both indicators converging, market watchers are alert to the possible emergence of a weekly golden cross, a pattern often associated with the start of a larger trend reversal.
Renowned X analyst Ash Crypto pointed to the forming weekly golden cross as a potential early sign that SOL could be on the cusp of a more lasting trend shift. SOL tested the $120 region for the first time in around eight months, highlighting the energy of the current recovery from earlier lows near $60.
The golden cross is not yet confirmed. Sustained price action above the 200-week moving average would reinforce the outlook, while a rejection at the upper boundary may lead to further consolidation before another breakout effort.
Constructive signs appear on Solana’s weekly chart, with price reclaiming the 200-week moving average and approaching a golden cross, though confirmation is still pending. Staying above this level would mark a significant development in the ongoing recovery.
$118 breakout could set up $148 target
SOL’s rally has brought it back to a key resistance level previously identified as a crucial boundary for support and resistance. The $118 region is now the pivotal area to watch as the asset makes another push, seeking to extend its upward recovery.
According to trader GordonGekko, if Solana price can establish itself above $118, the next upside target is around $148. SOL recently rebounded from support near $96, approaching current resistance, with a successful breakout likely pushing the token deeper into the next major supply zone at $148. If SOL falls back below $118, attention will shift to the $110 to $112 range.
Long-term forecasts put $400 in focus
Another perspective suggests SOL could enter a broader recovery if current price action builds into a firm bullish trend. Analyst Sweep’s long-term fractal comparison highlights similarities between Solana’s present consolidation phase and its previous base-building period, where a substantial rally followed. For the $400 to $500 zone to become a probable scenario, SOL must first overcome resistance at $118 and $148 and then confirm a higher trend structure.
These projections remain speculative. For now, the main thresholds to watch are the reclaiming of $118 as support and a successful test of the $148 resistance in the coming sessions.
Open interest surges as traders return
Derivatives market activity is rebuilding alongside Solana’s price recovery. Santiment Intelligence data reveal that SOL’s open interest in derivatives markets now stands at approximately $2.97 billion, reflecting greater exposure by traders seeking to capitalize on the move.
By comparison, Bitcoin’s open interest is about $25.84 billion and Ethereum’s sits at $16.97 billion. Across the digital asset landscape, rising open interest signals the return of leverage and growing participation as prices rebound.
Rising open interest on SOL derivatives points to increased leverage and trader involvement, but the risk of large liquidations remains if prices reverse abruptly, especially while SOL tests the $118 to $120 resistance area.
As Solana tests the $118-$120 resistance, the reaction at these levels will likely determine whether increased leverage fuels further gains or exposes traders to abrupt liquidations in the event of a reversal.
In rapidly moving markets with strong technical triggers like a golden cross, close monitoring of price and market structure is key for traders. In the meme token sector, for instance, social sentiment and timely trades can lead to explosive activity. Fomo App data showcases a notable example where a $99 investment in “Niu Lai” ballooned to around $370,000, highlighting the significance of tracking both prices and investor moves. Fomo App centralizes meme token discovery and trading, featuring investor rankings, social feeds, and trade alerts, offering users a way to follow meme tokens and investor actions in real time.
Solana outlook shifts as technicals improve
Solana’s recent price action is drawing renewed interest. The recovery above the 200-week moving average paired with the developing golden cross has improved the long-term technical outlook. Yet, confirmation of a new bullish phase depends on ongoing buying, rising participation, and the formation of a sequence of higher highs and lows.
Short-term consolidations or pullbacks would not undermine the structural recovery so long as key support levels hold. Market participants are waiting for clear confirmation that Solana can sustain its gains and potentially transition into a robust upward trend over the coming weeks.
