- Solana surged by over 5% in the last 24 hours after a pullback.
- Metrics suggested that a reversal could happen if certain conditions are met.
Solana [SOL] continues to draw attention in the cryptocurrency market as recent price movements ignited debate among the traders and investors.
Are we witnessing a retest of support levels, or is SOL surging for an anticipated bullish reversal? Let’s sink into it.
At press time, Solana was consolidating in a bullish pennant, which indicates an impending upward breakout.
However, since the 24th of May, the price has been on bearish momentum to fill the gap emanating from the zone of demand below the support level that may be a resistance zone.
The stochastic RSI (10.96) in near oversold levels, suggesting a potential bullish reversal in enough bullish momentum builds up.
Volume, development says…
AMBCrypto analysis of Santiment’s recent volume and development activity highlights a significant decrease in SOL’s trading volume since it peak in late 2021 and early 2022.
The price was stabilizing as of mid 2024. Despite this decline, SOL’s development activity network widened, indicating a long-term factor for a price rebound.
Source: Santiment
Whales on the move
AMBCrypto further looked at Santiment’s social volume and Whale Activity.
The percentage of stablecoins total supply held by whales with more than $5 million indicated a coexisting correlation between spikes in social volume and periods of whale accumulation.
This trend indicates that SOL was in a critical support level, imminent for a reversal.
The recent consolidation in whale activity coupled with moderate social volume suggested an accumulation phase and a potential preparation for significant price move-giving lights to the holders in long positions.
Source: Santiment
What next for Solana?
With the ongoing SOL developments and whales accumulations indicating a strong underlying support, the bullish pennant pattern and oversold Stochastic RSI also suggested an imminent reversal.
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Chances are Solana will surge and if enough bullish moment is build it could break free from the support traps.
However, the battle line at the support level on the demand zone should be a point of focus, as a breakdown below the level could steer more price drops.