Solana (SOL) is currently trading near the critical support zone at $145, after rising 26% since the Federal Reserve announced interest rate cuts on September 18. Following this acute rise, SOL saw a slight decline of 10%, but overall market sentiment remains hopeful.

Many analysts and investors hope that Solana will reach up-to-date all-time highs by the end of the year, driven by positive macroeconomic trends and growing confidence in the cryptocurrency market.

Key data from Coinglass reveals rising funding rates, indicating growing bullish sentiment among traders. This suggests that the recent price correction may be only a transient pause before further increases.

Investors are closely monitoring SOL’s price action, anticipating that a sustained break above $150 could pave the way for a up-to-date rally towards uncharted territory. All eyes are now on Solana as it navigates this key support level, with both short-term investors and long-term holders expecting a positive outlook in the coming weeks.

Solana is preparing for a rally

Solana (SOL) is currently holding above a key support level after a minor decline that affected the entire market yesterday. Despite this minor setback, sentiment among investors and traders remains overwhelmingly positive. Many expect SOL to rise and break above multi-month highs given the recent strength in price action.

Key data from Coinglass He highlights that Solana’s funding rate has been trending upwards since mid-September. Yesterday it reached 0.0127%, the highest level since behind schedule July. A rising funding rate is usually a bullish indicator, signaling increasing demand for the token.

The funding rate is a mechanism used in perpetual futures contracts, where it can be positive or negative. It is adjusted based on the price difference between the perpetual contract and the spot price, as well as interest rates. When the funding rate is positive, buyers (long positions) pay sellers (compact positions), which encourages futures and spot prices to converge.

This rising SOL funding rate suggests that more and more traders are betting on the token’s future appreciation, expecting higher prices in the coming weeks. As Solana maintains its current support and demonstrates forceful market fundamentals, the potential for significant growth remains high. Investors are now closely watching whether Solana will manage to break through subsequent resistance levels and confirm the beginning of a up-to-date phase of growth.

Demand for SOL testing

Solana (SOL) is currently trading at $145, holding well above the daily exponential moving average (EMA) of 200 with the critical support level at $140. This key area has proven to be a solid foundation for the price and if the bulls want to trigger a rally, they need to defend this support zone. For momentum to enhance significantly upwards, SOL must break the daily moving average (MA) at the 200 level, which is $154.

A close above the 200 MA would likely trigger a bullish rally, potentially pushing the price towards higher targets. However, failure to hold this key support and close above these levels could result in an extension of sideways consolidation or, worse yet, a deeper correction. In such a scenario, the next demand zone would be around $110, which is a significant support level that could attract buyers if the market enters a bear market.

For now, the $140 support level remains a line in the sand for Solana’s price action. Traders are closely monitoring whether SOL can break through key resistance levels and continue higher, or whether a potential correction is on the horizon.

Featured image from Dall-E, chart from TradingView