Solana (SOL) has recently performed strongly, continuing its upward momentum while testing the key resistance range of $176 to $188.

The price has rebounded from recent lows, showing the potential to challenge resistance that has persisted for months.

As of writing, SOL has risen 2.14% in the past 24 hours, currently trading at approximately $168.

Technical indicators and derivatives activity show strong performance.

Solana's recovery is supported by technical indicators and the derivatives market, with data indicating growing vulnerability among current shorts, further validating the potential for price increases.

According to the liquidation heatmap, short positions are primarily concentrated between $170 and $176. If the price breaks $176, it could trigger a wave of short liquidations, pushing the price further up.

On May 18, the total amount of short liquidations exceeded $1.72 million, while long liquidations were relatively minor, indicating that the imbalance in the short market provides favorable conditions for a bullish trend.

Financing rates are rising, with sentiment turning positive.

After several weeks of losses, Binance's financing rate has slightly turned positive (0.008%), reflecting increasing interest from traders in long positions.

A rise in financing rates typically signals a shift in market sentiment, indicating confidence in Solana's upward prospects.

Although financing rates remain moderate, this signal indicates that bearish sentiment is weakening, with traders holding a more positive outlook on Solana's upward potential. Continued capital inflow is expected to attract more leveraged longs, thereby enhancing bullish momentum.

Social interest is rebounding, with increased attention from retail investors.

Meanwhile, Solana's social dominance has rebounded to 5.18%, showing a recovery from the downward trend of previous weeks.

This growth indicates that retail investor interest is beginning to rebound, which typically appears in the early stages of a bull market.

Although current social attention is still below March's peak, this trend suggests a continuous increase in community engagement.

If the price breaks through the current resistance range, social appeal may rise further, helping to drive the bullish trend.

The technical outlook is strong, with significant breakout potential.

From a technical perspective, Solana is currently holding above the $163.16 1.618 Fibonacci extension support level, indicating price strength.

MACD shows convergence near the zero line, indicating a potential bullish crossover in the future, further reinforcing the possibility of a price breakout.

These technical indicators suggest that Solana is not only likely to break through $176 but also has the potential to advance towards higher Fibonacci targets like $189.88 and $198.13.

Development activity is steadily increasing, with fundamentals supporting the rise.

Solana's development activity remains stable at 23.38, showing that builder confidence remains unaffected.

Although activity levels have declined from previous peaks, they still indicate a healthy network fundamental, with strong confidence among long-term investors.

Sustained development activity provides a solid foundation for Solana, supporting its price increase driven by factors beyond speculation.

Conclusion: The possibility of a breakout is increasing.

As Solana tests key resistance zones, all indicators show that it is likely to break through current levels.

Factors driving price increases are already in place, from short liquidation pressure, growing social interest, to strong technicals and stable development activity.

If the bulls break through the resistance area of $176 to $188, Solana may experience a sustained increase, targeting higher price ranges.