Solana (SOL) Price Flirts With $135 Support as Bullish Setup Strengthens

• Solana dropped to $104 but has since rebounded, now testing the crucial $135 support level, which aligns with the 50 EMA.
• The Sharpe Ratio for SOL has risen to 1.32, a historically strong indicator of potential for extended price rallies.
• The CMF has surged above zero, signaling renewed buying pressure, which could set the stage for a retest of $171.42.

Solana’s (SOL) price recently dropped close to the key psychological level of $100, as selling pressure picked up. However, that downward momentum quickly lost steam, and within a few days, the price began to recover.

Since then, SOL has rebounded and is now testing support at $135 —a key level that could help it sustain its recent rally if bullish momentum continues to build.

In this analysis, CCN examines if SOL’s market value might continue to climb or if it could face a pullback.

Solana Bounces From April Lows

Solana’s price plummeted from $178 to $104 between March 2 and April 8. This decline led to the formation of a descending channel, with speculation that the altcoin could hit lower values.

However, by April 9, bulls came to its rescue, and SOL eventually broke out of the upper trendline of the bearish pattern. Following the breakout, Solana’s price rose to $135.

According to the daily chart, the 50-day Exponential Moving Average (EMA) also hovered around the same $135 level.

As shown in the chart below, Solana’s price is on the verge of breaking above the 50-day Exponential Moving Average (EMA), marked by the blue line. This level currently acts as a strong support zone.

If SOL successfully flips this resistance into support, it could signal renewed bullish strength, suggesting buyers are regaining control.

In line with the bias, the Relative Strength Index (RSI) reading has also risen above the neutral line.

Therefore, the increase in the indicator’s rating signifies rising bullish momentum. If sustained, SOL’s price could climb above $140.

SOL’s Potential Reward Outweighs Risk

Beyond the technical outlook, on-chain data from Messari shows that Solana’s Sharpe Ratio has climbed to 1.32. For context, the Sharpe Ratio gauges the risk-adjusted return of an asset.

A reading below 1 implies that the returns may not justify the risks. However, when the ratio rises above 1, it signals a favorable risk-to-reward setup.

Given SOL’s current reading of 1.32, it indicates that the asset could offer a good risk-to-reward ratio, potentially paving the way for an extended price increase.

SOL Price Forecast: Possible Run Above $170

Another indicator supporting an extended upswing in Solana’s price is the Chaikin Money Flow (CMF).

For the first time since last weekend, the CMF reading has crossed over the zero signal line, indicating rising buying pressure.

If sustained, SOL might breach the resistance at $137.81. Should that be the case, the next target for the altcoin might be a run to $171.42 near the 0.618 golden pocket ratio.

On the contrary, if selling pressure increases, the CMF reading might pull back below the zero signal line.

In that scenario, the bullish thesis might be invalidated, and Solana’s price might drop below $100.