Solana (SOL) is attempting to regain a key support level amid the recent market recovery, with bullish sentiment seemingly returning to altcoin. Some analysts suggest that its momentum could push the cryptocurrency towards the next crucial resistance.
Solana's sentiment reaches positive levels again
Over the past few days, Solana has seen a bullish recovery from last week's lows, jumping 14% from support at $121. The market recovery shot the token above the $145 barrier earlier this week after printing five consecutive green daily candles.
Amid this week's surge, the analytics platform on the Santiment circuit highlighted that Solana's social sentiment has seen a huge spike to historic highs, fueled by institutional interest, technology advantages, community support and influencer engagement.
"With news of institutions like GameStop and BlackRock integrating bitcoin and launching Solana's yield-bearing tokenized treasury funds, the No. 5 market cap crypto asset is seeing an astonishing level of upside pouring in on social media," explained Santiment's Director of Marketing Brian Quinlivan.
According to the post, the social media posts reflect optimism about SOL price recovery and the upside outlook for the broader crypto market. Of note is that Solana is registering "an almost unheard of 18:1 ratio of positive vs. negative comments right now."
Just a month ago, SOL sentiment hit its lowest level in a year. According to analyst Miles Deutscher, sentiment hasn't been at these levels since the Solana regained the $100 barrier in early 2024.
It's worth noting that market sentiment has changed significantly since the collapse of the memecoin craze that fueled the SOL rally last year. Following the release of memecoin TRUMP and MELANIA and the LIBRA token controversy, several members of the community have expressed growing fatigue with the numerous scams.
Subsequently, the cryptocurrency's price has fallen by more than 50% from its all-time high in January (ATH), losing the $200 support zone and reaching an annual low of $111 earlier this month.
SOL prepares for the next big resistance
Various market observers have noted Solana's recent performance, highlighting Monday's recovery from the $136 level. This level has been significant resistance over the past two weeks and also served as a key breakout level during the Q1 and Q4 breakouts of 2024.
Analyst Jelle believes there is "plenty of room to cover" despite a "solid recovery" to the lows of 2024. Meanwhile, another market watcher pointed out that Solana has broken an ascending triangle pattern following the price spike.
Having attempted to regain the mark from $140 this morning, SOL is currently re-testing the recently restored support, moving between the $136-$139 price range. A successful breakout confirmation could push Solana's rally towards the next major barrier, at $180.
According to Ether Wizz, SOL is "fully ready for its next B I G move". Once the next crucial resistance is broken, "the next leg up will take us to $270. A lot of people aren't ready for that move yet," the analyst concludes.
At the time of writing, Solana is trading at $138, a jump from 2% in the weekly period.
