- Solana’s price returned to its 5-year ascending trendline, historically marking major accumulation zones and signaling potential long-term market reversals.
- Momentum compression around $180 suggests a high-probability accumulation phase, often preceding multi-month upward movements and renewed investor interest.
- Solana’s TVL reached a 40-month high with $13.34 billion locked, showing ecosystem adoption growth despite price consolidation around $220.
Solana ($SOL) is back to its five-year ascending trendline, which has historically been associated with key accumulation zones. Analysts indicate there may be a retest here that will signal a long-term reversal area, and expecting renewed interest from investors.
Trendline Provides Long-Term Support
Solana’s 5-year trendline has consistently acted as a foundation across multiple market cycles. The line has endured both bullish surges and extended bear phases, maintaining its relevance as a support level.
Crypto analyst BATMAN stated, “$SOL is finally back at its 5-year long trendline. This is a major trendline that has held strong across multiple cycles.” The trendline’s persistence signals that Solana’s broader uptrend remains intact.
The current retest occurs near $180, a historical entry point for long-term investors. Price action at this level has often coincided with periods of accumulation and eventual upward momentum.
Momentum Compression Suggests Potential Reversal
At the trendline, Solana experiences momentum compression, a key phase that may precede significant upward moves. Price consolidation around this zone suggests investors are entering positions steadily.
BATMAN highlighted that momentum compression in this area “often precedes massive expansion moves,” indicating a higher probability of a bottom rather than a peak at the current stage.
Repeated historical touches of the trendline have resulted in multi-month growth phases. This pattern supports the idea that the current level may represent a long-term reversal zone.
Fundamentals Show Strong Ecosystem Growth
Solana’s fundamentals continue to demonstrate strength despite price consolidation. Crypto Patel reported that $SOL TVL recently reached a 40-month high, with 58.8 million SOL locked in DeFi.
This represents the highest level of SOL locked since 2022 and shows that ecosystem adoption is growing even while price remains stable around $220. Patel noted, “Price = consolidating around $220, Fundamentals = PRINTING ALL-TIME HIGHS.”
The overall value locked in the ecosystem reached $13.34 billion, is indicative of the extent of overall adoption and network activity. The combination of long-term trendline support together with increasing DeFi interaction reinforces a likely reversal area for Solana.
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