TLDR
- Solana (SOL) price recovered from a low of $95.2 to over $120, a 16.7% increase
- A veteran whale purchased 32,000 SOL ($3.72 million) after a six-month hiatus
- SOL had a “fake breakdown” below $112 support level but quickly recovered
- Key resistance levels for SOL are at $120, $125, and $132
- Technical indicators show mixed signals with RSI holding above 50 but MACD losing momentum
Solana’s native cryptocurrency SOL has shown strong recovery signs over the past week, climbing from $95.2 to break through the $120 resistance level. This 16.7% increase comes despite earlier market concerns following a 6.5% drop during Thursday’s U.S. trading session.
The price movement appears to be gaining momentum amid renewed confidence from large investors, even as the broader crypto market continues to feel pressure from escalating trade tensions between China and the United States.
SOL’s price action has begun to reverse its previous downward trend, with on-chain data revealing fresh accumulation patterns from experienced investors.
Major Whale Returns After Six-Month Absence
One of the most eye-catching developments supporting SOL’s recovery is the return of a major investor to the market after six months of inactivity.
According to blockchain analytics firm Lookonchain, this veteran whale purchased 32,000 SOL tokens worth approximately $3.72 million.
What makes this investor’s move particularly noteworthy is their history of strong conviction. The same whale previously purchased 30,541 SOL for $6.61 million when the token was trading at $216 three years ago.
Despite SOL’s price plummeting below $10 during market downturns, this investor never sold their holdings. Such unwavering confidence from deep-pocketed investors could help stabilize SOL’s support levels and fuel further recovery.
The whale’s return to active purchasing suggests growing optimism about SOL’s near-term prospects, potentially signaling to smaller investors that the worst may be over.
Technical Analysis Points to Bullish Pattern
SOL’s recent price action reveals an interesting technical development that may support further gains. On April 6th, the cryptocurrency appeared to break down below the yearly support level of $112, which initially suggested accelerating bearish momentum.
However, this breakdown proved to be a false signal, as buyers quickly stepped in to push the price back above this key level. The lack of follow-through selling pressure indicated weakness in the bears’ conviction.
Chart analysis shows that SOL has been trading within a falling wedge pattern since November 2024. This pattern, formed by two converging downward trendlines, often precedes a bullish breakout when the price breaks above the upper trendline.
Solana $SOL is currently testing the range Value Area Low (VAL) at $116
If it can flip this level into support, it could make a run towards the range Point of Control (POC) at $142 🚀 pic.twitter.com/XOfXWR0Q9y
— Trader Edge (@Pro_Trader_Edge) April 11, 2025
Analyst Trader Edge suggests that if SOL can flip the $116 level into support, it could push up towards the range Point of Control at $140. Failure to get above this level, could see a drop to the next key support level at $80.
Testing Key Resistance Levels
As SOL continues its recovery, traders are closely watching several key resistance levels that could determine its next move.
SOL is currently trading above both the $105 support level and its 100-hour simple moving average, reflecting ongoing bullish sentiment in the short term.
For the recovery to maintain momentum, SOL must hold above the $112 and $110 support levels, which correspond to previous resistance points and Fibonacci retracement markers.
These areas could provide buying opportunities if the price pulls back, with the $100 mark serving as the ultimate line of protection in the short term.
Technical indicators present a mixed picture of SOL’s current position. The Moving Average Convergence Divergence (MACD) indicator on the hourly chart shows decreasing momentum.
However, the Relative Strength Index (RSI) remains above the 50 mark, suggesting continued bullish pressure, albeit weakening.
These combined signals reflect broader uncertainty in the cryptocurrency market, which continues to influence altcoin performance.
Traders should approach these indicators cautiously, especially with SOL testing key resistance levels. While the price action suggests strength, confirmation of a sustained breakout is needed before taking directional positions.
SOL’s future in the current crypto market cycle largely depends on its ability to overcome the remaining resistance levels. A confirmed breakout could establish it as a leading altcoin in the next wave of bullish sentiment.
With ongoing improvements to the Solana network and increasing adoption, the fundamental outlook remains positive despite short-term technical challenges.
For now, SOL’s trajectory remains closely tied to broader market conditions, particularly the performance of Bitcoin and Ethereum. If market sentiment improves and resistance levels are breached, SOL could enter a sustained upward trend toward higher price targets.
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