Solana tests support at $119 – do technical signals indicate a directional move?

The end of December brought a clear revival for Solana. After four bullish sessions and rebounds from critical support levels, the token demonstrated strength in the market. The latest data from CoinMarketCap indicate that the 24-hour trading volume of SOL surged by 161% to $4.15 billion. At the time of this analysis, Solana was trading near $127.50, up 2.45% over the past day, suggesting a rebuilding of demand after earlier declines.

Support zone at $119 becomes a turning point

The daily chart analysis of Solana reveals key dynamics. The price rebounded from the support zone at $119, which the market has consistently respected over the last four trading sessions. This structure previously served as a reversal point, and its hold by buyers has rekindled discussions of a potential rise to $145 – representing a 13.8% increase from those levels.

The ADX (Average Directional Index) reached a value of 25.62, crossing the critical threshold of 25 points. Such a reading traditionally indicates strengthening of the current move and the possibility of maintaining the directional impulse. Meanwhile, the Chaikin Money Flow (CMF) remained in negative territory at -0.13, signaling dominance of selling pressure and reserves in buyer engagement.

Divergent forecasts among analysts

The cryptocurrency community on social platforms shared varied scenarios. Some traders suggest the potential for a rise to $144, others forecast $147. More aggressive prognosticators point to the possibility of breaking through the $150 mark in the coming days. However, these scenarios were tempered by mixed signals from technical indicators.

Leveraged positions focus on defense

Despite optimism from certain market segments, intraday traders remained cautious. Data from CoinGlass revealed concentrated liquidations at levels of $122.2 (lower support zone) and $130.4 (upper resistance area). At these levels, traders accumulated long positions with leverage totaling $114.12 million and short positions with leverage of $149.74 million.

This setup suggests that short-term speculators are significantly more skeptical about SOL breaking through the $130.4 level. The dominance of short-leveraged positions indicated market skepticism toward faster price rallies.

Summary – cautious optimism with risks

Solana’s rebound from the support zone brought renewed demand and investor interest. However, further strengthening of this impulse will largely depend on how the price behaves near resistance areas, where a significant portion of leveraged positions are concentrated. Technical directional indicators, despite strong ADX readings, remain weakened by negative CMF, indicating an unnatural readiness of buyers to push the price higher in the coming days.