The Current Market Sentiment

The tides are shifting for Solana (SOL) as it navigates a crucial moment in the cryptocurrency market. Recent bearish signals in the 1-day market structure are casting shadows over its potential upswing.

Bullish Signs Amidst Bearish Indicators

Despite the darker market outlook, Solana is seeing some bullish light. Increased transaction activity and a growing demand have helped lift SOL prices above $120, reaffirming strong user interest.

The Battle at $140

However, the path forward isn't straightforward. A formidable supply zone looms around $140, posing a significant barrier for bulls aiming for a real recovery. Breaking through this level is crucial if SOL wants to spark a genuine price rally.

Outpacing Ethereum: A Surge or a Stumble?

Interestingly, Solana has begun to outpace Ethereum (ETH) in various metrics. The SOL/ETH trading pair is seeing new highs and SOL is enjoying increased inflows. Will these indicators be enough to set the stage for a long-term price surge?

Rising Buying Pressure Sparks Investor Optimism

The recent buying pressure provides a glimmer of hope for investors. The $143 mark represents a lower high in the downtrend of the last three months, and breaching this level could flip the market structure to a bullish trend.

Technical Indicators Show Promise

Notably, the Relative Strength Index (RSI) has climbed above the neutral 50, suggesting a possible momentum shift. With the RSI staying above this mark for three consecutive days—its longest run since January—bullish tendencies are starting to surface.

Major Liquidation Levels to Watch

The liquidation heatmap reveals significant zones at $150 and $158, with over $2 billion in liquidations waiting to be triggered. The $136-$142 range is also a critical liquidity cluster that traders should monitor.

What Lies Ahead for SOL?

A pocket of liquidations at $95 exists, but it's too far off to be a short-term target. Given the current technical indicators and heatmap analysis, a push toward the $150-$160 range appears likely in the upcoming days.

The Bulls’ Challenge

However, the persistence of bulls at the $140 support level remains uncertain. Their ability to maintain this position, particularly in tandem with a Bitcoin (BTC) recovery, could be the key to reigniting bullish sentiment across the broader crypto market.