Solana Price Sets Up for a 5% Bounce — Here Is How It Could Turn Into a Rally

Solana's price, currently near $83, is showing signs of a short-term recovery despite a recent 4% drop, remaining up nearly 8% over the past week. Technical analysis reveals an inverse head-and-shoulders pattern on the 12-hour chart, supported by bullish divergence in the Relative Strength Index (RSI), suggesting selling pressure is easing, provided the price holds above the $81 swing low.

Further support comes from market positioning, as high short liquidation leverage around $85 could accelerate any upward move via a short squeeze if the price rises. Additionally, on-chain data indicates that short-term holders are increasing their SOL supply share, a pattern historically preceding local bottoms and rebounds.

The critical level for determining the extent of the move is $87, which aligns with the 0.618 Fibonacci retracement and a significant on-chain cost basis cluster. A rejection at $87 would likely cap the bounce near 5%, confirming the immediate setup. However, a decisive break above $87 could signal the start of a larger rally, potentially targeting $90, $93, and eventually $120, though a drop below $75 would invalidate the bullish theory.

(Source：BeInCrypto)