Solana Eyes Short-Term Bounce as Technical Setup Strengthens

SOLUSDT's price has come under pressure in recent days, falling nearly 10% from its local high. But despite the pullback, a rare technical pattern and steady institutional demand suggest the trend could be gearing up for a reversal.

On the daily chart, SOLUSDT is on the verge of a golden crossover, a bullish signal that occurs when the 100-day EMA crosses above the 200-day EMA. Historically, this setup has preceded short-term rallies. SOLUSDT is currently holding just above the $160 support level, and a move above $176 could confirm bullish momentum.

If price extends past $188, the next psychological target sits at $200. However, if SOLUSDT breaks below $155, downside pressure may build. A full invalidation occurs if the EMAs flip bearish, where the 200-day EMA overtakes the 100-day, forming a potential death crossover.

SOL’s balance on centralized exchanges has dropped nearly 10% since July 23, falling from 33.06 million to 30.78 million tokens. This reduction in available supply has coincided with a repeat of a historical crossover pattern, where price moves above the exchange balance trendline.

In past instances, such as on July 16 and July 24, this crossover preceded multi-day rallies. The latest crossover happened near $169. Although the price has pulled back, the trend remains valid as long as supply stays low and price holds above the $160 zone.

While SOL’s spot price corrected over the past week, CME futures open interest held steady. This divergence often suggests that larger players are maintaining their long exposure, waiting for weaker hands to exit.

A similar divergence in late July saw price rebound from $184 to $188 once open interest stabilized. As long as CME activity remains steady or rises, institutional sentiment will likely continue to act as a support buffer beneath current SOLUSDT price levels.