- SOL traded near $171 with a 2.14% gain as it approached the $176–$188 resistance zone.
- Solana Social Dominance rose to 5.18%, indicating retail attention is returning as technicals turn favorable.
Solana [SOL] has continued its upward trajectory, reclaiming bullish momentum as it tests a critical resistance cluster between $176 and $188. The price has already rebounded strongly from recent lows and appears poised to challenge this multi-month barrier.
At the time of writing, SOL gained 2.14% in the last 24 hours to trade at $171.47.
This recovery comes as Solana shows signs of strength across both technical indicators and derivatives activity, with mounting evidence of short-side vulnerability just above current levels.
Can bulls trigger a squeeze?
Liquidation heatmaps revealed that a dense layer of overleveraged short positions was stacked between $170 and $176.
With SOL already hovering around $171, a decisive move above $176 could cascade into liquidations, driving further upside.
On the 18th of May, total short liquidations exceeded $1.72 million, while long liquidations remained negligible.
That imbalance hints at a classic setup—if bulls ignite upside volatility, a cascade of short liquidations could accelerate the move.
Source: CoinGlass
Funding Rates flip positive after an extended bearish phase
On top of that, Funding Rates on Binance turned slightly positive at 0.008% after weeks in the red.
This shift suggests a growing willingness among traders to hold long positions, signaling a sentiment shift.
While the rate remains modest, it reflects cooling bearish bias and increasing trader confidence in Solana’s upside potential. Sustained positive funding could attract more leveraged longs, reinforcing bullish momentum.
Source: Santiment
Social buzz picks up as retail attention returns
Meanwhile, Social Dominance for Solana climbed to 5.18%, recovering from a multi-week decline. This uptick suggests a renewed interest among retail investors, typically seen during early bullish phases.
Although the current level is still below the March spike, it highlights growing community engagement.
If the price breaks resistance, social traction may intensify and further amplify bullish momentum.
Source: Santiment
Is SOL preparing for a breakout? MACD and Fib say yes
Technically, Solana remains above the 1.618 Fibonacci extension at $163.16, a critical support level that has held through recent volatility.
At the same time, the MACD shows convergence near the zero line, signaling a possible bullish crossover in the coming days.
These patterns reinforce a scenario where SOL could reclaim $176 and head toward the next targets at $189.88 and $198.13, defined by higher Fib levels.
Momentum indicators are gradually strengthening, boosting the breakout probability.
Source: TradingView
Development activity holds firm amid volatility
Having said that, it’s not just price-driven hype.
Solana’s Development Activity remains firm at 23.38, showing that builder confidence hasn’t wavered.
Although activity dipped slightly from earlier peaks, it continues to signal confidence from builders and maintain network fundamentals.
Consistent development helps solidify long-term investor confidence and can support price rallies built on more than just speculation.
Source: Santiment
Will SOL overcome resistance and ignite a rally?
All metrics point toward a possible breakout as SOL tests a historically significant resistance range.
From liquidation pressure and rising social interest to strengthening technicals and stable development, the ingredients for a rally are in place.
If bulls clear the $176–$188 zone, Solana could initiate a sustained push toward higher extension targets.
