Solana Shows Early Reversal Signals
Solana is trading at $88.26 right now, which represents a 7.2% gain over the past 24 hours. That’s not insignificant, and it suggests some real momentum building. The price climbed steadily from the low $82 region earlier today before accelerating toward $90. It actually touched $90.65 at one point, which marks the high of the day.
After that peak, there was some modest retracement. The price is now consolidating near $88, which tells me buyers are still active despite some profit-taking. The 24-hour range spans from $82.35 to $90.65, showing pretty significant volatility during this session.
Looking at broader timeframes, the picture gets more complicated. SOL is up 8.1% over 7 days and 9.6% over 14 days, which indicates strengthening short-term momentum. But here’s the thing – it’s still down 28.8% over 30 days. So the real question becomes whether this surge marks the start of something sustainable, or just another temporary bounce.
Technical Indicators Suggest Trend Shift
On the daily chart, Solana is showing early signs of trend stabilization. The Parabolic SAR dots have shifted below the price at $75.67. This flip typically means downward momentum has weakened and buyers are beginning to regain control.
After that prolonged decline from higher levels, SOL might have carved out a base near recent lows. It’s now attempting to build higher lows around the mid-to-high $80 region. Whether this holds depends on if Solana can maintain support at the SAR level.
Momentum indicators add some weight to this developing recovery story. The Stochastic RSI is elevated, with the %K line near 88 and the %D around 75. That places the oscillator in overbought territory, which reflects strong short-term momentum. But it also signals that SOL could face minor pullbacks or consolidation before extending higher.
Liquidation Data Shows Market Pressure
Solana’s liquidation data reveals elevated volatility across multiple timeframes, with a clear imbalance between long and short positions. Over the past hour, total liquidations reached $268.89K. Shorts accounted for $256.66K of that, compared to just $12.24K in long liquidations.
A similar pattern appears on the 4-hour timeframe. Total liquidations stand at $851.60K, including $607.23K in shorts versus $244.37K in longs. This suggests recent upward price movement has triggered a wave of short liquidations, which reinforces short-term bullish pressure.
Looking at the 24-hour window, total liquidations amount to $32.25M. Shorts contributed $27.79M of that, though long liquidations remain significant at $4.46M. Meanwhile, the 12-hour window shows $5.61 million in total liquidations, with longs ($3.70M) actually exceeding shorts ($1.91M).
I think what we’re seeing here is a market that’s been heavily positioned for downside, now getting squeezed as price moves higher. The liquidation data supports the technical picture of a potential trend shift, but I’m cautious about calling it a confirmed reversal just yet.
The elevated Stochastic RSI readings suggest we might see some consolidation or pullback before any further upside. And while the Parabolic SAR flip is encouraging, I’d want to see SOL hold above that $75.67 level and perhaps establish a higher low pattern before getting too excited.
Traders should probably watch how price behaves around current levels. If buyers can defend the $85-$88 zone and push through $90 with conviction, that would strengthen the reversal thesis. But if we see a sharp rejection back below $85, it might just be another false start in this volatile market.
