- Solana price rebounds after it found support around $205.41 on Tuesday.
- On-chain data shows signs of recovery as SOL’s daily trading volume rises and the long-to-short ratio reaches the highest level in a month.
- A daily candlestick close below $205.41 would invalidate the bullish thesis.
Solana (SOL) price recovers on Wednesday, finding support near the $205 level after a sharp pullback earlier in the week. On-chain data hints at a rally in the short term as SOL’s daily trading volume rises and the long-to-short ratio reaches the highest level in a month.
Solana technical outlook, on-chain data hint at recovery
Solana price reached a new all-time high (ATH) of $264.39 on November 22 and corrected afterward. SOL declined more than 16% in the next 17 days, retesting its 61.80% Fibonacci retracement level at $205.41, which is drawn from its August low of $110 to its ATH.
This level roughly coincides with the 50-day Exponential Moving Average (EMA) at $213.12 andthe daily support level of $213.12, making this area a key reversal zone. At the time of writing on Wednesday, SOL rebounds, trading around $220.
If the $205.41 continues to hold as support, the altcoin could go for another leg higher to retest its December 6 high of $247.
However, the Relative Strength Index (RSI) on the daily chart reads 46, still below its neutral level of 50, suggesting indecisiveness among traders. For the bullish momentum to resume, the RSI should trade above its neutral level. Such a development would add a tailwind to the recovery rally.
SOL/USDT daily chart
Meanwhile, on-chain metrics for Solana are positive. Crypto intelligence tracker DefiLlama data shows a recent surge in traders’ interest and liquidity in Solana’s chain. The daily trading volume has risen from $2.92 billion on Saturday to $5.99 billion on Wednesday, reaching the highest level since November 20.
SOL daily trading volume chart. Source: DefiLlama
Coinglass’s data shows that SOL’s long-to-short ratio stands at 1.03, the highest level in a month. This ratio reflects bullish sentiment in the market, as a figure above one suggests that more traders anticipate the price of the altcoin to rise, bolstering Solana’s bullish outlook.
SOL long-to-short ratio chart. Source: Coinglass
However, if SOL’s daily candlestick closes below the $205.41 support level, the decline will resume to retest its psychologically important level of $200.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement
Supra’s 25% surge on Friday calls attention to lesser-known cryptocurrencies as Bitcoin, Ethereum and XRP struggle. Cosmos Hub remains range-bound while bulls focus on a potential inverse head-and-shoulders pattern breakout.

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin price remains under selling pressure around $82,000 on Friday after failing to close above key resistance earlier this week. Donald Trump’s tariff announcement on Wednesday swept $200 billion from total crypto market capitalization and triggered a wave of liquidations.

Can Maker break $1,450 hurdle as whales launch buying spree?
Maker is back above $1,300 on Friday after extending its lower leg to $1,231 the previous day. MKR’s rebound has erased the drawdown that followed United States President Donald Trump’s ‘Liberaton Day’ tariffs on Wednesday, which targeted 100 countries.

Gold shines in Q1 while Bitcoin stumbles
Gold gains nearly 20%, reaching a peak of $3,167, while Bitcoin nosedives nearly 12%, reaching a low of $76,606, in Q1 2025. In Q1, the World Gold ETF's net inflows totalled 155 tonnes, while the Bitcoin spot ETF showed a net inflow of near $1 billion.

Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.