The recent rise above $154 was a major milestone for Solana (SOL). At press time, the altcoin showed strong bullish momentum as it not only reclaimed critical support at $154, but also rose above its 20-day and 50-day EMAs. This recent the rise came after oversold SOL conditions triggered a recovery from the $131 support level. Solana is currently trading around $156.5 while in a high volatility phase.

SOL had already posted a very strong rally earlier this year, but then reversed around the $202 resistance level, resulting in a 37% decline over the next three months. During this downtrend, the cryptocurrency repeatedly tested the $127 support level. However, SOL recently formed a falling wedge pattern on its daily chart, which usually heralds a bullish breakout.

The altcoin’s rebound from the support range of $127-$113 contributed to the formation of a double bottom pattern on the charts. The subsequent rally above $154 confirmed this bullish sentiment. Going forward, SOL is expected to maintain this momentum, potentially testing the $172-$175 range in the near future. Analysts suggest waiting for the 20-day EMA to rise above the 50-day EMA to strengthen the bullish outlook. Conversely, a fall below $154 could prevent a quick recovery.

The Relative Strength Index (RSI) also showed improvement, breaking above 50 but facing resistance at 60. Moreover, the Awesome Oscillator turned positive, showing bullish peaks similar to those seen during SOL's previous rally to $186.

Coinglass data shows a significant increase in SOL funding rates over the past few days, indicating renewed bullish sentiment among investors. Monitoring this metric is critical because declining financing rates may reflect declining buyer interest. Potential investors should also consider overall market sentiment, especially Bitcoin's trajectory, before making trading decisions.

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