A bullish divergence spotted on Solana’s (SOL) daily chart indicates upside potential.
Solana’s bullish outlook gains strength from a double-bottom pattern and bullish divergence. The Morning Star formation at support further reinforces this trend.
Approximately $34 Million worth of short positions are at risk of liquidation. Data suggests these short positions will be liquidated if SOL crosses the $124.1 level.
Solana technical analysis signals strong bullish potential for SOL, driven by patterns like the double-bottom and Morning Star formations.Bullish divergence further supports upward momentum amid market recovery. These indicators highlight Solana’s promising outlook for sustained growth.
Why is Solana (SOL) Price Rising?
On April 5, 2025, Treasury Secretary Scott Bessent declared Bitcoin as a store of value. This bold statement sparked a remarkable surge across the cryptocurrency market.Following the statement, Solana has soared impressively, registering a price surge of over 8% and trading near $122. However, its trading volume remained low during the same period, though it appears to be improving.SOL now appears bullish as it has formed a bullish price action pattern. Solana technical analysis reveals that the asset forms a bullish double-bottom price action pattern.Solana Price Performance | Source: TradingViewHowever, this pattern is not yet fully completed. A single leg with two bottom points near the crucial $114 horizontal level features a bullish Morning Star candlestick pattern.This combination indicates potential upward momentum in price action. The daily chart also reveals a bullish divergence, suggesting possible upside momentum.A bullish divergence occurs when an asset’s price forms a lower low or maintains a double bottom. In contrast, a technical indicator like the Relative Strength Index (RSI) forms a higher low.This signals that the asset’s momentum is strengthening, potentially leading to an upward price movement. If SOL price remains above the $114 support level, it could significantly surge.Per Solana technical analysis, this move may increase the price by 18% to the next resistance at $145. The double-bottom pattern, bullish divergence, and Morning Star formation strongly support SOL. These factors collectively enhance its bullish outlook.
Traders $147 Million Worth of Bullish Bet
Looking at the price action, traders’ sentiment has shifted significantly from bearish to bullish, according to on-chain analytics firm Coinglass.Traders are over-leveraged at the $117.5 support level. They have accumulated $147.63 Million in long positions.SOL Exchange Liquidation Map | Source: CoinglassMeanwhile, $124.1 represented another over-leveraged level on the resistance side. Traders have built short positions totaling $34 Million. The positions at these over-leveraged levels reflect the current market sentiment, which is bullish.
$7.75 Million Worth of SOL Inflows
As the price rebounded, some crypto investors and long-term holders started selling their holdings. This behavior could indicate caution or profit-taking in response to market changes.Data from Coinglass showed that $7.75 Million worth of SOL tokens flowed into exchanges over the last 24 hours. This indicates a significant increase in SOL inflows within a day. This inflow into exchanges indicates potential selling pressure.SOL Spot Inflow/Outflow | Source: CoinglassHowever, since the amount is relatively low, it hasn’t had any significant impact on the SOL price. The on-chain metrics suggest that the bulls are currently controlling the market. This momentum could strongly support SOL in its upcoming rally.
