Solana may have established a significant price floor at $130, according to multiple on-chain indicators and technical analysis. As accumulation patterns emerge and network activity stabilizes, cryptocurrency traders are positioning for a potential 50% rally back toward the $200 range high that characterized SOL's previous trading zone.
Solana (SOL) appears to have found solid footing at the $130 price level, with three critical data points suggesting the recent pullback may represent a buying opportunity rather than the beginning of a deeper correction.
The fifth-largest cryptocurrency by market capitalization has experienced significant volatility in recent weeks, retreating from highs near $200 to test support in the $130 region. However, emerging technical and on-chain signals indicate this level may serve as a springboard for the next leg higher.
First, on-chain accumulation metrics show that long-term holders have been absorbing supply at current levels, a classic sign of confidence in the asset's medium-term prospects. Wallet addresses holding SOL for extended periods have increased their positions during the recent dip, suggesting institutional and experienced traders view the current price as attractive.
Second, network activity data reveals that despite the price decline, fundamental usage of the Solana blockchain remains robust. Daily active addresses and transaction volumes have remained relatively stable, indicating that the ecosystem's growth trajectory hasn't been derailed by the price correction. This divergence between price action and network health often precedes bullish reversals.
Third, technical analysis reveals that SOL has successfully defended a crucial support zone that previously acted as resistance during its rally from lower levels. This support-turned-resistance-turned-support pattern is a textbook bullish signal in technical trading circles.
The confluence of these three factors creates a compelling case for a return to range highs. If SOL can maintain support above $130 and begin building momentum, a move back toward $200 would represent approximately 50% upside from current levels.
However, traders should remain cautious about broader market conditions. Cryptocurrency markets remain sensitive to macroeconomic developments, regulatory news, and Bitcoin's price action. Any significant negative catalyst could invalidate the bullish thesis and push SOL to retest or break below the $130 support level.
For now, the data suggests that Solana's correction may have run its course, setting the stage for a potential recovery rally in the coming weeks. Risk-conscious traders may want to wait for confirmation through a decisive break above near-term resistance before committing capital to long positions.