Solana (SOL) is stabilizing above its $221 support level after reaching an all-time high (ATH) of $264. Currently trading around $233, it shows resilience amid recent market volatility.
The altcoin's bullish potential is supported by a highly positive funding rate, indicating traders' optimism about its future price performance. This confidence is evident as traders maintain long positions despite fluctuations.
Solana's correlation with Bitcoin has dropped to 0.43, offering opportunities for SOL to rally independently. Historically, a declining correlation is associated with Solana’s price surges, potentially enabling it to outperform Bitcoin.
A breakout above the $245 resistance could push Solana towards $270, potentially reaching new highs beyond $264. Conversely, falling below the $221 support might signal downside risks, undermining bullish sentiment.
With Bitcoin's market influence, Solana could benefit from the broader bullish trend, provided it overcomes its consolidation zone.
