Solana rose 4.18% on 18 September to trade at about $105.89, recovering above the $105 level as a derivatives-led rebound pushed the token through short-term resistance.
SOL moved between an intraday low of $100.90 and a high of $106.67 after opening at $101.63. The rally extended a recovery from below $97 earlier in the week, with buyers first defending the psychological $100 mark before breaking through the $103-$105 area.
The wider cryptocurrency market also advanced after the Federal Reserve’s latest policy decision. Short liquidations added to the upward pressure as traders positioned for further falls were forced to close bearish positions.
The move provided some relief after regulatory uncertainty affected digital assets following the U.S. Senate’s failure to advance the CLARITY Act. However, Solana’s next direction is likely to depend on whether buyers can sustain the breakout rather than the size of the initial rise.
Indicators remain supportive
SOL is trading above its four major moving averages on the daily chart. The 20-day simple moving average is at $101.87 and represents the nearest dynamic support, while the 50-day, 100-day and 200-day averages are around $90.62, $83.55 and $82.68 respectively.
The upward-sloping 20-day average remains above the longer-term indicators, keeping the wider recovery structure intact. The daily average directional index is 41.91. Although an ADX reading above 25 generally indicates a strong trend without showing its direction, Solana’s price structure and moving-average alignment currently favour buyers.
Short-term momentum is more stretched. On the four-hour chart, SOL is above the Bollinger Bands’ middle line at $100.09 and has moved briefly beyond the upper band near $105.47. The four-hour relative strength index is 71.37, above the commonly used overbought level of 70.
That reading does not guarantee an immediate reversal, but it suggests the rally could pause or attract profit-taking as volatility increases.
Liquidation levels put $107-$108 in focus
CoinGlass’ 24-hour liquidation heatmap shows SOL rising from below $100 to above $105 through several leverage clusters. The nearest significant overhead liquidity is between approximately $106.50 and $108.
A move above the session high of $106.67 could therefore bring the $107-$108 area into focus. If SOL clears that zone, the late-August and early-September highs around $110-$112 could become the next targets. Heatmaps indicate where leveraged positions are concentrated, but cannot predict whether price will reach those levels.
Support is forming between $103 and $105, with further clusters around $100-$101. A fall below $103 would weaken the breakout and could lead to a retest of $100. A break beneath $100 could expose the four-hour lower Bollinger Band near $94.71, while the 50-day average at $90.62 would provide the next broader support.
Crypto analyst Ali Martinez said on-chain data showed more than 40 million SOL had traded around $100, creating what he called a major support floor. He also identified a possible cup-and-handle pattern on Solana’s weekly chart, with a neckline near $360. Martinez said a confirmed break above that level could open a longer-term route towards $1,300, although that projection remains well above the current price and depends on a breakout that has not happened.
Pseudonymous analyst Scientoffereda gave a nearer-term target of $130 after the daily support-and-resistance flip. The trader said he planned to reduce half of his spot position near $130 and consider re-entering around $90.
For now, the setup favours buyers while SOL holds $103 and the 20-day average near $101.87. External risks for U.S. investors include the Federal Reserve’s policy outlook, progress on congressional crypto market-structure legislation and renewed pressure across U.S. equities and crypto derivatives.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
