The SOL token, native to the Solana blockchain, is demonstrating signs of recovery following a significant price drop. The cryptocurrency market also saw a strong rally in response to recent comments from U.S. Treasury Secretary Scott Bessent.
Current Price and Market Dynamics
Over the last 24 hours, SOL has surged over 8% and is currently trading around $123. Despite a 9% drop in trading volume, a recovery is observed as the market continues its upward trajectory following Bessent's statement.
Technical Analysis of Solana (SOL)
According to technical analysis, SOL appears to be forming a bullish double-bottom pattern on the daily chart. However, this pattern is not yet complete, as the current chart shows a single leg with two bottoms at the key support level of $114.
Liquidation Levels and Market Behavior
The shift in market sentiment and the strength of the bullish momentum may put $11.5 million worth of short positions at risk of liquidation, as reported by analytics firm Coinglass. Traders are currently over-leveraged, with key levels at $121.3 and $124.1.
Current market data confirms that bullish momentum is returning, and if SOL maintains a price above $114, there is a potential for growth up to $144.5.
