Whether it breaks $86 will determine... Solana's upward trend conversion is imminent

▲ Solana (SOL) ©

Solana is on the verge of breaking a key resistance level, and the possibility of a short-term trend reversal is attracting market attention.

According to investment media outlet FXStreet on May 5 (local time), Solana (SOL) is testing resistance near the 50-day Exponential Moving Average (EMA) of $86.10 and attempting an upward breakout. Analysis suggests that market sentiment is gradually turning bullish as on-chain data and derivative indicators simultaneously improve.

On-chain and derivative data support the possibility of an uptrend. According to CryptoQuant's aggregation, the Solana market has entered a neutral to weakly bullish phase, with the spot market cooling down from overheating and the futures market showing a buy-dominant trend. The long-to-short ratio, along with open interest, rose to 1.12, reaching its highest level in the past month, indicating an increase in bullish bets.

Institutional demand is also showing early signs of recovery. Based on SosoValue data, Solana spot ETFs recorded a net inflow of $3.28 million on May 4, marking the first fund inflow since April 23. If this trend continues, upward price pressure could further intensify.

Technically, a weakening of downward pressure is detected. The current price is around $84.82, still below the 50-day EMA, but the Relative Strength Index (RSI) is maintaining a neutral level around 50, and the Moving Average Convergence Divergence (MACD) also appears to be moving out of the bearish zone. In the short term, whether the $86.10 to $86.67 range is broken is identified as a critical turning point that will determine the direction.

Upper resistance levels follow in order: $92.11, $94.05, $98.53, $108.12, and $113.17, with the $120 mark acting as a major long-term resistance. Conversely, on the downside, $77.12 is considered the primary support level, followed by the $67.50 range as a structural bottom. The market is currently in a phase of confirming whether it has entered the early stages of a trend reversal, according to analysis.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*