Solana shows early signs of a significant recovery after drawing a classic “W” pattern on its recent 12-hour charts. This technical movement suggests that the Solana price could be preparing for a decisive rebound in the short term. According to the analysis presented by Aaryamann Shrivastava, the bullish structure emerges after November’s capitulation, offering a necessary respite to investors.
Technical data indicates that the asset is currently trading around $143, dangerously approaching the neckline resistance at $146. A confirmed breakout of this double bottom formation would project a 14% rise towards the $165 target. Furthermore, on-chain indicators suggest that selling pressure is decreasing rapidly, allowing buyers to regain control.
Are long-term investors stopping their massive sell-offs?
The change in HODLer net position reveals that long-term holders are beginning to reduce their capital outflows. This behavior signals a transition towards neutrality, which is fundamental to stabilizing the general market trend. On the other hand, sales restriction by these whales provides the necessary space to recover bullish momentum.
Solana’s NUPL metric has recently entered the capitulation zone, an area that historically marks seller exhaustion point. This psychological phenomenon usually precedes trend reversals, as happened in April before a major rally. Likewise, this potential buy signal offers fertile ground for the strategic accumulation of new digital assets in portfolios.
What key levels will define the asset’s immediate future?
Overcoming the $146 barrier is crucial to validate the reversal and direct the token towards $157 initially. If positive sentiment persists on the blockchain, the path towards $163 and finally $165 would remain open for the bulls. Therefore, traders must watch buying volume closely to confirm the strength of the imminent breakout.
If the market fails to sustain this momentum or general weakness reappears, the asset could retreat towards the vital support of $136. A loss of this level would invalidate the current bullish outlook and delay recovery efforts for weeks. Finally, market sentiment stability will be determinant to confirm if this rebound is sustainable over time.
