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Key Insights:
- Solana reclaimed $120, triggering bullish chart signals.
- ETF optimism has grown under new SEC leadership.
- Liquidations fuel short-term breakout momentum.
Solana price surged past $120 on April 12, reaching a critical technical level. This move was fueled by speculation around a potential ETF approval and increasing short liquidations.
The move placed SOL above its 50-day simple moving average and a long-standing downtrend line. This raised hopes among traders that a broader breakout may occur. At press time, Solana price traded around $122, which was up nearly 4% in 24 hours.
$120 Level Emerges as Key Pivot Point for Solana Price
Two market analysts, @0xGumshoe and @Nebraskangooner, flagged the $120 mark as critical to watch.
In an April 12 post, Gumshoe highlighted that Solana reclaiming the $120 level signals a potential deviation and reclaim setup. This suggested the possibility of a bullish continuation for SOL.
“Pretty damn bullish $SOL chart right now. This would be a deviation with a reclaim if it holds above $120,” he wrote. However, he clarified he held no current position.
Nebraskangooner agreed, stating that a daily close above $120 was necessary to confirm a breakout. He projected a potential move toward the $135–140 range if Solana price establishes support at that level.
Technical Indicators Suggest Strengthening Momentum
TradingView data revealed that SOL broke out of a falling wedge pattern. The daily RSI showed a bullish divergence near the 40 level, signaling upward momentum. This setup has previously preceded upward reversals.
Solana price structure aligned with the 0.5 Fibonacci level at $138. It also falls within the 0.618 level, around $148, indicating key retracement zones. Further upside could target $184, which aligns with the 200-day simple moving average.
The April 12 chart showed that SOL retested a descending trendline after reclaiming $120. The 50-day EMA at $136 and 200-day EMA at $166 remained key resistance levels. RSI showed bullish divergence. If SOL holds above $122, the trendline could flip into support.
ETF Speculation Adds Fuel to Solana Price Action
Sentiment around Solana price improved following reports of growing odds for a potential U.S.-based Solana ETF. According to data from Polymarket, traders now assign a 76% probability of SOL ETF approval by 2025. This marked an 11% swing from January 4, when odds reached 65%.
The shift came after Paul Atkins, known for his pro-crypto stance, assumed the role of Securities and Exchange Commission (SEC) chair. Several asset managers, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital, have filed ETF applications.
The SEC has not yet offered any official guidance. However, traders view Atkins’ appointment as encouraging for altcoin-based ETF products.
Derivatives Market Squeeze Accelerates SOL Gains
Data from CoinGlass showed short liquidations intensified the upward move. In the last 24 hours, $152.4 Million in short positions were liquidated across crypto markets. Over $9.3 Million was linked to Solana (SOL).
Comparatively, only $2.1 Million worth of long positions were liquidated over the same period, highlighting market skew. Crypto Rand identified Solana’s setup as a crucial confluence zone. He noted a strong bounce, with SOL testing the key resistance near $125.
A breakout beyond $125 could lead to accelerated recovery, according to WorldOfCharts. SOL could “easily hit $200 area after the successful breakout.”
Favorable technical indicators drive Solana price rebound above $120. Rising ETF approval odds and short-side liquidations further bolster this upward momentum.
Traders now await a daily confirmation above $120 to validate a bullish continuation toward the $135–148 range. Any failure to hold current levels may invalidate the setup, but sentiment has shifted in favor of buyers for now.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
