Solana bounced from $192.43 to $198.01 despite hotter-than-expected PPI data.
An inverse head and shoulders pattern signals strengthening upward momentum.
With sustained bullish pressure, SOL could invalidate the previous bearish outlook.
The broader crypto market may be feeling the sting of hotter-than-forecast inflation data.
However, Solana’s (SOL) bullish camp has refused to blink despite Thursday’s Producer Price Index (PPI) outcome.
Before the PPI release, Solana’s price was trading above $200, with some analysts predicting a move towards its all-time high.
However, that did not happen as SOL slid below the psychological zone.
Despite that, SOL seems ready to bounce back and move towards a higher value.
Inflation Shock Fails to Move Solana
On the 4-hour chart, Solana’s price slipped from $207.89 to $192.43 on Thursday, following the release of the U.S. PPI data.
The July PPI annual rate was 3.3%, well above expectations of 2.5%.
Adding to the surprise, the previous reading was revised upward from 2.3% to 2.4%. This marks the highest annual PPI level since February.
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The PPI rose 0.9% monthly, the largest increase since June 2022. The hotter-than-expected inflation data sparked concerns over potential tighter monetary policy and raised doubts about a September rate cut.
However, as of this writing, SOL has bounced to $198.01, with the image below showing that it is still trading in an ascending parallel channel.
Besides that, the red bars on the Awesome Oscillator (AO) have been steadily shrinking, signaling that bearish momentum around SOL is losing strength.
This gradual fade in negative momentum suggests that selling pressure is easing, allowing SOL bulls to regain control. If this trend continues, it could set the stage for higher highs.
SOL’s funding rate has stayed positive, supporting this move. A positive funding rate means traders holding long positions pay shorts, signaling bullish sentiment.
When this metric remains positive alongside a rising price, it shows that demand for leveraged long positions is strong — and that traders are confident enough to maintain those positions despite the funding costs.
This combination of a sustained positive funding rate and upward Solana price action can be a reinforcing bullish factor, potentially driving more buying activity and lifting the market value higher in the short term.
SOL Price Retracement Over
Looking at the technical perspective again, Solana’s daily chart has flashed multiple bullish signals.
First, SOL’s price has formed an inverse head and shoulders pattern. As it stands, Solana’s price has broken above the neckline at $188.70.
Should the volume around the altcoin increase, it could confirm the pattern and open the door for a sustained rally.
Second, the Moving Average Convergence Divergence (MACD) has produced a bullish crossover, with the MACD line crossing above the signal line. This position points to strengthening upward momentum.
If this continues, SOL might break the resistance at $218.73. Finally, the Bull Bear Power (BBP) has stayed in positive territory, signaling that buyers remain in control and bears struggle to lower prices.
With all three indicators aligned, Solana’s price could surge 50%. If this happens, the market value could hit $294.92, marking a new record high.
On the contrary, if SOL bears push the price below the neckline mentioned above, this prediction might not happen. In such a scenario, SOL’s price might decline to $142.53.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
