Solana Price Eyes $260 Target as Bullish Divergence Appears

Amidst the ongoing price correction, Solana (SOL) is attempting to hold its key support level of $180 following its recent breakout. The asset struggle and correction are potentially driven by a 2% drop in Bitcoin (BTC) price and significant long liquidations worth $830 million.

Current Price Momentum

SOL is not the only asset facing a price decline or struggling to hold its key level. Currently, assets like Ethereum (ETH), XRP, Dogecoin (DOGE), and many others follow a similar trend.

If you look at the price, SOL is currently trading near $181. Amid this uncertainty, it has lost over 5% of its value in the past 24 hours. This price drop has made investors and traders more cautious. As a result, SOL’s trading volume has dropped by 16% during the same period.

Given the current market sentiment, several optimistic posts by experts and analysts have surfaced on X (formerly Twitter). In these posts, some suggest that Solana’s price might retest the breakout level, while others believe the asset is preparing to reach a new all-time high.

Not just that, one crypto expert shared a technical perspective. In a post, the expert noted that SOL appears to form a bullish divergence on the chart. According to experts, this pattern suggests the asset is on the verge of a rally.

Solana (SOL) Price Action and Key Technical Levels

In addition to these optimistic comments, watching the key support and resistance levels is important. Solana’s technical analysis reveals that the asset is currently in an uptrend and appears bullish.

The ongoing price struggle near the key support at $175 seems to be a breakout retest, which will determine whether the asset is ready for upside momentum or, if it fails to hold, confirms a fakeout.

Solana’s price action suggests that if it holds the $175 level, it could continue its bullish trend and potentially see an impressive 38% gain, with the price reaching the psychological level of $260.

On the other hand, if this momentum fails, it could be considered a fakeout, and the price may experience downside movement.

However, the asset’s Relative Strength Index (RSI) is near 44 on the four-hour timeframe, indicating that it is far from the overbought territory and has enough room to continue its upward momentum.

$123.50 Million Worth of SOL Left the Exchanges

Solana’s bullish outlook has gained support from investors and long-term holders, who are accumulating tokens by taking advantage of the dip.

On-chain analytics tool Coinglass reveals that over $123.50 million worth of SOL has moved out of exchanges in the past 48 hours. This substantial outflow suggests potential accumulation by investors.

Not just long-term investors, but traders also appear to be betting on the bullish side.

At press time, the major liquidation levels where traders have shown strong interest are $176 on the lower side and $183.5 on the upper side.

They have built $202.93 million worth of long positions and $83.30 million worth of short positions at these levels.

As prices continue to rise, the $83.30 million in short positions is on the verge of liquidation and will be triggered if the price hits the $183.5 level.