Solana's (SOL) price has experienced significant volatility, especially around the resistance level of $160. After a 20% drawdown in August, investors have grown cautious, but recent market behavior suggests a potential rebound.
Analysts highlight the negative turn in the funding rate, indicating extreme bearish sentiment which could set the stage for a rally. Brian Quinlivan from Santiment mentions increasing shorts as a potential catalyst for a price increase.
The Chaikin Money Flow (CMF) indicator has shown that when it dips to -10.0, Solana usually bounces back within seven to ten days. This makes recent declines appear temporary with potential for price recovery.
Macroeconomic factors and institutional interest also play a role. If these factors remain positive, SOL could benefit, reinforcing the case for a price surge.
Currently trading at $132, SOL must break through the $137 resistance to aim for $160. Historical data suggests that breaking this resistance could lead to further gains.
However, failing to breach the $137 level might result in sideways movement, dampening bullish sentiment and potentially invalidating optimistic forecasts.
