Solana Holds Above $159 as Bullish Signal Sparks Hopes of a Rally

Solana price action is drawing attention as the cryptocurrency holds above a critical support level. Market participants are closely watching the $158–$160 range, which has previously served as a demand zone.

A TD Sequential 9 buy signal on the 4-hour chart now raises expectations for a short-term recovery. Amid broader crypto market uncertainty and increasing interest in staking-based ETFs, Solana’s stability is fueling fresh speculation around a potential rally.

RexShares ETF Filing Draws Attention to Solana Crypto

The bullish speculations on Solana price surged as interest in SOL has grown following RexShares’ filing for Ethereum and Solana staking ETFsin the United States.

The asset management firm submitted a prospectus for these funds under the 1940 Act, using a structure that includes Cayman Islands-based subsidiaries for spot exposure to Solana and Ethereum.

Bloomberg ETF analyst James Seyffart commented on the approach in a post on X, noting, “They will be getting their spot exposure to ETH and SOL via Cayman subsidiaries… This is a clever regulatory work-around.”

This filing comes during a period of regulatory delays for other digital asset ETFs. The US SEC recently postponed decisions on spot ETF applications for Avalanche and Cardano.

With staking now confirmed by the US SEC not to be a security, RexShares may be positioned for quicker approval. Analysts believe the products could launch within the next few weeks, though no date is confirmed.

Solana Price Holds $159 Amid Sell-Off and Technical Exhaustion

Solana price is currently trading near $153.93, just below the $158–$160 support zone. This area has previously acted as a strong demand level and now serves as a critical line for a potential rebound.

A TD Sequential 9 buy signal recently appeared on the 4-hour chart, pointing to trend exhaustion and raising the possibility of a price recovery.

Analyst Ali Charts highlighted this development, stating that SOL price could be “primed for a rebound as long as it holds above $159.” For confirmation, traders are watching for a green candle close above the previous candle and a break above the $162.50 resistance.

Meanwhile, recent Solana price action shows a pattern of lower highs and lower lows, typical of a bearish trend. However, multiple small-bodied candles with lower wicks around $158 suggest that buying interest is starting to build at this level.

Long Liquidations Surge Past $36M, Raising Bounce Potential

According to derivatives market data, $36.92 million in long positions were liquidated in the past 24 hours. Roughly 94% of these came from long trades. This indicated that bullish traders were caught off guard by the ongoing price drop. In the last four hours alone, $644,000 in long liquidations have been recorded.

This surge in long liquidations points to a possible long squeeze, where forced selling clears out over-leveraged positions. This can often result in a relief rally, as selling pressure diminishes and traders re-enter the market at lower prices.

Open interest has declined by 7.3% to $6.65 billion, suggesting traders are closing positions amid the uncertainty. Combined with the buy signal from the TD Sequential and strong historical support, the Solana price setup suggests a rebound is possible, though not guaranteed.

Solana Price Awaits Confirmation for Short-Term Rebound

Solana price’s 4-hour chart indicates a selloff is taking place, though signs are appearing that the price may bounce back. RSI is below 30, which means that the market is oversold.

The MACD histogram stayed below zero. Traders are keeping an eye out for the first signs of a flattening trend.

Shorter candles and small wicks near $158 might show that buyers are helping to hold the price. If Ethereum moves past $160 and breaks $162, momentum could change and allow a journey toward $166 or $170.

A substantial drop in Solana price below $153 may result in $150 being the next main support for the token. A decline under the $150 level might result in more losses up to $145. The fact that the asset is still above $159 encourages hopes of a rally in the near future, as interest in ETFs grows.

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