The level of 145 dollars will determine the success or failure of SOL.

The market momentum of Solana (SOL) is accelerating as on-chain activity, interest in staking, and cash flow from whales create a positive scenario for this layer-1 "giant".

Solana continues its upward trend, trading at $141 at the time of writing, after rising nearly 3% on the day. This has extended the monthly increase to over 40%, indicating strong momentum overall.

After being stuck in a downtrend for a few weeks, SOL has broken out and is now trading below a strong resistance area ranging from 138 to 145 dollars.

This area used to be a large supply zone and the bulls are currently trying to turn it into support.

The breakout structure indicates that a reversal may have begun, supported by higher lows and increased trading volume.

However, to confirm this, the price needs to close decisively above $145 daily, which could trigger a strong rally towards the next major resistance area at $180.

With previous rejections in this area, the current retest is a critical moment for Solana's short-term trajectory.

Source: TradingView## Solana: 2 factors driving momentum

Of course, price action does not occur in isolation. Large-scale movements have confirmed a change in market sentiment.

According to data from Lookonchain, Galaxy Digital has withdrawn 606,000 SOL ( worth 79.7 million dollars ) from exchanges and staked 462,000 SOL ( 60 million dollars ), reinforcing the long-term confidence of institutional investors.

In addition, network indicators show significant growth, with 29 million active addresses recorded, an increase of 17%, and a total number of transactions reaching 374 million, surpassing all other blockchains combined.

In addition, the trading volume on DEX platforms has reached 2.27 billion dollars per day, surpassing Ethereum, while transaction fees increased by 42% to 7.67 million dollars.

The increase in on-chain demand reflects not only the growing acceptance among users but also the expansion of utilities across Solana's DeFi and NFT ecosystems. This together helps reinforce the sustainability of the current price surge.

Cautious Leverage Accumulation

While the spot market momentum is strengthening, data from derivative products shows that traders remain cautiously optimistic.

The open contract (OI) increased by 10.71% to $5.57 billion, while the trading volume of options surged by 164.97% to $2.55 million, indicating growing interest in directional trading.

However, the total trading volume decreased by 31.89% and the options open interest dropped by 15.2%, indicating that traders are participating selectively, possibly to hedge risks or wait for confirmation.

This hesitation aligns with the significant nature of the resistance level at 145 dollars.

!()https://img.gateio.im/social/moments-166ba95429757b7ff7ab0e25a128c128[sol]Source: Coinglass## Market sentiment change?

Liquidation events provide additional insights. Liquidations of Short positions reached $5.57 million, compared to just $81.9 thousand in Long positions, indicating that the bears were caught off guard in the recent price surge.

!()https://img.gateio.im/social/moments-64a94db194bcb21222a8acda49b59b39[sol]Source: CoinGlassThis imbalance indicates strong bullish pressure, potentially driven by a Short Squeeze. However, the funding rate (funding fee) remains at a neutral to slightly negative level, suggesting that despite the rising prices, many traders are hesitant to open Long positions.

Can the bulls breakout?

In simple terms, Solana is at a crucial turning point. The bullish structure is supported by strong technical factors, confidence from whales, and a surge in on-chain utility.

However, the resistance zone at 145 dollars remains a major barrier both psychologically and technically. If the bulls succeed in turning this area into support, the price of SOL may be ready for a quick breakout towards 180 dollars.

Until then, the market is still at a turning point – the bulls are gaining an advantage, but a clear confirmation signal is still needed to assert the dominant position.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

Ding Ding