SOL is making a comeback, approaching the 'death resistance zone'.
Solana (SOL) continues its strong rebound and is currently nearing the historical key resistance zone of $176-188. This area has repeatedly halted upward momentum, but now SOL is strongly rebounding from its recent low and seems ready to launch a full assault on this 'bull-bear dividing line'. So far, SOL has risen 2.14% in the last 24 hours, trading at $171.47.
Shorts are piling up; if the price breaks through, it may trigger a liquidation tsunami.
CoinGlass data shows that a large amount of high-leverage short positions have accumulated between $170 and $176. SOL is currently hovering at the edge of this liquidation cluster, and if it effectively breaks through $176, it could trigger a massive short squeeze, propelling the price sharply upwards.
On May 18 alone, the amount of short liquidations reached $1.72 million, while long liquidations were negligible, further confirming that the market is on the edge of a possible 'short squeeze'.
The financing rate has turned positive, and bullish sentiment is quietly gathering.
Binance's financing rate has turned positive for the first time in weeks (+0.008%), which is an important signal of structural warming in the market. Although the value is not extreme yet, it indicates that the market is gradually recovering from persistent pessimism, with traders inclined to hold long positions and bet on SOL's rebound.
Ongoing positive capital inflows may attract more leveraged buying, further boosting market enthusiasm.
Retail investors are returning, and social activity is surging.
Santiment data shows that Solana's social dominance has jumped to 5.18%, reversing several weeks of sluggishness. This increase typically occurs in the early stages of a bull market, indicating that retail investor interest is reigniting.
Although current enthusiasm has not yet returned to March's peak, the upward trend in social volume will further boost market sentiment. Once the price breaks through resistance, it will create an amplifying effect of 'sentiment-price resonance'.
MACD and Fib show dual bullish signals, and the technical indicators are releasing strong breakout signals.
From a technical perspective, SOL continues to hold the key 1.618 Fibonacci extension level ($163.16), indicating strong bottom support. At the same time, the MACD indicator is approaching the zero line, preparing for a bullish crossover, which provides technical momentum for future breakout.
The next price targets are $189.88 and $198.13. If SOL stabilizes above $176, it may open the curtain for a new round of price surges.
Developers are not leaving the market, and strong fundamentals support price recovery.
Aside from price and sentiment factors, Solana's development activity remains relatively stable at a level of 23.38. This shows that despite the market's volatility, builder confidence remains intact, providing strong fundamental support for long-term investors.
Continued development enthusiasm is expected to help SOL shed the label of a 'speculative coin' and establish a more sustainable value foundation.
Breaking through $176, SOL could trigger a new round of explosive growth.
Overall, technical indicators, liquidation momentum, market sentiment, and development activity are all releasing positive signals. SOL is currently at a critical point, and if the bulls can push through the key resistance at $176, it could trigger a chain liquidation of shorts, leading to a rapid price increase.
This offensive may mark the starting point for SOL to break through its yearly high. The market is holding its breath to see if the bulls can ignite this 'long-buried powder keg'.
