Solana (SOL) registered its first significant buy signal in months as the SuperTrend indicator flipped positively for three consecutive days, marking a potential reversal after a steep 74% drop. This shift indicates a weakening of bearish pressure and highlights buyers’ efforts to regain control of key price levels previously rejected.
Market sentiment appears to be shifting beyond short-term volatility, with experienced traders showing confidence in a medium-term recovery. Data from Binance revealed that long positions dominate, representing nearly two-thirds of tracked accounts, resulting in a long/short ratio of 1.89. This trend signals that smart money participants maintain a bullish stance despite Solana trading below a critical $84 resistance point, anticipating further upside potential rather than retreating to protective positions.
Derivatives markets support this optimistic outlook as well. Solana's open interest–weighted funding rate remains modestly positive, reflecting consistent demand for leveraged long positions without signs of overheated speculation. This controlled but persistent buying pressure suggests that institutional and professional traders are backing the ongoing recovery with measured confidence.
After rebounding from lows near $60, Solana has secured support just above $78 and continues testing resistance around $84. Its daily relative strength index (RSI) above 60 confirms solid buying momentum, underlining the possibility that a decisive push toward the $90 target could materialize if resistance is breached. However, if $84 holds firm, some traders might book short-term profits, potentially causing fluctuations before any sustainable breakout.