Breakout above $86 is the key... Solana's bullish reversal imminent

▲ Solana (SOL) ©

Solana is on the verge of breaking through a key resistance level, and the possibility of a short-term trend reversal is attracting market attention.

According to investment media FXStreet on May 5 (local time), Solana (SOL) is testing resistance around its 50-day Exponential Moving Average (EMA) of $86.10, attempting a bullish breakout. Analysis suggests that market sentiment is gradually turning bullish as on-chain data and derivatives metrics simultaneously improve.

On-chain and derivatives data support the possibility of an uptrend. According to CryptoQuant data, the Solana market has entered a neutral to slightly bullish phase, with the spot market cooling down from overheating and the futures market showing a buyer-dominant trend. Alongside open interest, the long-to-short ratio has risen to 1.12, reaching its highest level in the past month, indicating an increase in bullish bets.

Institutional demand is also showing early signs of recovery. Based on SosoValue data, Solana spot ETFs recorded a net inflow of $3.28 million on May 4, marking the first fund inflow since April 23. If this trend continues, upward price pressure could further intensify.

Technically, a weakening of downward pressure is detected. Although the current price is around $84.82, still below the 50-day EMA, the Relative Strength Index (RSI) maintains a neutral level around 50, and the Moving Average Convergence Divergence (MACD) also shows signs of moving out of bearish territory. In the short term, a breakout above the $86.10 and $86.67 range is identified as a critical juncture for determining the direction.

Upper resistance levels are sequentially at $92.11, followed by $94.05, $98.53, $108.12, and $113.17, with the $120 mark acting as a major long-term resistance. Conversely, on the downside, $77.12 is the primary support level, followed by the $67.50 range as a structural bottom. Analysis suggests the market has entered a phase of confirming whether it has begun an initial trend reversal.

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