Solana Needs 40% Surge to Break $180 Barrier - Key Support Insights

Solana (SOL) has recently encountered a decline, struggling to regain its upward momentum even after various attempts to recover. The cryptocurrency is currently looking to overcome a significant hurdle at the $180 resistance level.

Despite support from long-term holders (LTHs), SOL requires a stronger push to break through this critical mark.

Investor Sentiment is Optimistic

Recent data from the HODLer Net Position Change metric reveals that Solana holders are actively repurchasing SOL tokens they previously sold. In just the past week, long-term holders have accumulated over 1 million SOL, valued at about $128 million. This wave of buying activity indicates a growing confidence among investors, who expect a price recovery for Solana.

Historically, enhanced accumulation by long-term investors tends to signal bullish trends. As these holders buy at lower price points, they help solidify support levels, thereby lessening the risk of significant downturns. If this trend persists, it may lay the groundwork for Solana to attempt another upward breakout.

From a technical standpoint, Solana is exhibiting signs of improving momentum. The Relative Strength Index (RSI) is trending upward, indicating a potential positive shift in market sentiment. However, the RSI must confirm this trend by surpassing the neutral 50.0 level and establishing it as new support.

An increasing RSI suggests that buyer pressure is building, which could assist SOL in recovering its previous losses. This would significantly enhance the probability of Solana succeeding in breaking through its key resistance levels.

SOL Price Recovery Hangs in the Balance

Currently, Solana is trading at $128, with a price decline of 5.5% in the last 24 hours. Despite this downturn, SOL has managed to remain above the $126 support level while making attempts to breach the $135 resistance. The longer-term goal is to reach $180, which serves as a pivotal point for confirming bullish momentum.

Overcoming the $180 barrier has proven challenging, as Solana has failed to approach it in recent weeks. To achieve this, SOL would need to experience a rally of 40%, particularly with a prior breakout above $161. Sustained buying activities and an optimistic market sentiment could facilitate this needed move.

On the downside, if Solana fails to break through $148 or struggles to go past $135, it risks losing its current support. A drop below $126 and $118 may expose SOL to further declines, potentially testing the $109 level. Such a scenario would negate the bullish outlook and shift market momentum back towards bearish sentiment.