The prominent altcoin Solana (SOL) is witnessing a slight but hopeful recovery, starting from August 2. After a previous weakening phase, this token has surged nearly 10%, reaching $171.91 at the time of writing.
This bullish momentum indicates that market sentiment is showing signs of improvement, as technical indicators consistently signal positive potential for maintaining the upward trend.
The price recovery of SOL is accelerating
Data from the SOL/USD daily price chart is sending positive signals, indicating that bullish momentum is gradually being restored in the SOL holding investor community.
A clear testament is the Balance of Power (BoP) indicator — a tool for measuring the strength relationship between buyers and sellers — which is currently maintaining a positive level, specifically at 0.76, and continues to show an upward trend. This indicator fluctuates between -1 and +1, with positive values reflecting overwhelming buying pressure, while negative values indicate dominant selling pressure.
When the Balance of Power (BoP) reaches a high positive level like it is now, it means that the buyers are in control, pushing prices close to the highest level of the trading day. This development reinforces confidence in the price recovery trend of SOL and indicates the return of positive cash flow in the market.
Alongside the price recovery, the Relative Strength Index (RSI) is also recording an upward trend, further reinforcing the positive outlook for SOL. Currently, the RSI stands at 51.65 and is gradually rising — a sign that buying pressure is sustainably increasing.
RSI is an important technical indicator used to assess whether an asset is overbought or oversold, with a scale ranging from 0 to 100. When RSI exceeds the threshold of 70, it typically signals the possibility of a downward correction due to overbuying, while a level below 30 indicates that the asset may be sold off and about to enter a recovery phase.
With the RSI currently at a neutral level and continuing to rise, the market is gradually leaning towards the bulls. Bullish momentum is being rebuilt, opening up space for a new breakout if demand continues to be maintained.
SOL price is approaching a decisive moment
A strong buying wave could be the catalyst for SOL to break through the nearest resistance level at $176.33. If this price level is conquered with sufficient momentum, this cryptocurrency could certainly surpass the crucial psychological threshold of $180, thus opening up new growth potential.
However, this upward momentum still carries risks if market sentiment unexpectedly reverses or profit-taking pressure increases. In the scenario where the bears regain dominance, SOL could turn back down to the support zone of $158.80 – erasing most of the gains accumulated during the recent recovery.