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Solana (SOL) showcased a promising rebound on Wednesday, climbing 4.95% intraday to reclaim the $230 level. This recovery comes after a challenging three-day losing streak that saw the token dip by 15%, weighed down by macroeconomic uncertainties. The broader crypto market received a boost following the U.S. Federal Reserve’s decision to pause interest rate hikes, fueling a wave of optimism across digital assets. Solana’s price recovery aligns with this improved sentiment, as traders appear eager to capitalize on its recent dip. Market Data Points to Bullish Sentiment According to TradingView data, the SOL token opened the day at $227, briefly rallying to $238 before stabilizing near $232. This move could indicate the formation of a local bottom, setting the stage for a sustained uptrend. Derivatives market data adds weight to the bullish case. Coinglass’s liquidation map reveals an uptick in leveraged long positions for the Solana token, with $212.88 million in long contracts compared to $106 million in short positions. This bullish skew, where long positions account for nearly 66.7% of leverage, suggests growing confidence among traders betting on further upside. Importantly, when long leverage surges after a prolonged decline—as seen with the cryptocurrency’s recent 15% drop—it often signals a potential bottom. Market makers could take advantage of this imbalance by driving higher prices to liquidate short positions, adding momentum to an upward move. Key Levels to Watch Market analyst 52kskew highlighted on Twitter that Solana’s price is consolidating above a previous lower high (LH), a critical level that triggered the recent swing low. The analyst notes that reclaiming the weekly open near $240 is vital for bulls to build momentum toward $250. $SOL 4HConstructive chart I think Price currently consolidating above previous LH with led to the swing low~ Potential HL developing Note weekly open here, very key to…

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Filed under: News - @ January 31, 2025 4:20 am