While Bitcoin (BTC) and Ether (ETH) are in the green, a few leading altcoins, including Ripple (XRP), and Solana (SOL) are in the red.
Similar to XRP, Solana is down by less than 1% in the last 24 hours but is approaching a key resistance level.
The bulls are attempting to push the price above this critical hurdle at $86.10.
Positive on-chain activity and derivatives metrics indicate strengthening sentiment.
The momentum indicators also show easing bearish signals, suggesting that a breakout attempt could be gaining traction.
Solana’s on-chain and derivatives data paint a bullish picture
SOL is trading at $84.96 at press time on Tuesday, down by less than 1% in the last 24 hours.
CryptoQuant summary data suggests a neutral to slightly bullish outlook for Solana.
According to CryptoQuant, SOL’s spot markets is showing cooling conditions, while the futures markets shows both cooling and buy-side dominance.
The derivatives data suggests a positive bias among retail traders.
On the derivatives side, metrics tend to show a positive bias.
CoinGlass’ long-to-short ratio for Solana reads 1.12 on Tuesday, the highest level over a month.
This ratio climbing above one reflects bullish sentiment in the market, as more traders are betting on the asset’s price to rally.
Institutional investors are also not left behind.
According to CoinGlass’s ETF page, Solana spot Exchange Traded Funds (ETFs) recorded an inflow of $3.28 million on Monday, marking the first inflows since April 23.
If the institutional demand continues and intensifies this week, the Solana price could move higher.
Solana Price Forecast: SOL targets $88 in the near term
SOL is currently trading near $85, holding a bearish near-term bias as it remains below key Exponential Moving Averages and Fibonacci retracements.
At press time, SOL is trading below the 50-day EMA at $86.10, with the 23.6% Fibonacci retracement of the latest swing located slightly higher at $86.67, reinforcing the immediate bearish trend.
The momentum indicators suggest a mixed market condition.
The Relative Strength Index (RSI) is hovering around a neutral 55, and the Moving Average Convergence Divergence (MACD) is slightly below zero, hinting at fading downside pressure.
If the bulls regain control, they would encounter initial resistance around the 50-day EMA at $86.10 and the $88 swing high.
A daily candle close above this level would expose the 100-day EMA at $94.05 and the 38.2% Fibonacci retracement at $98.53 in the near to medium term.
The more substantial barriers at the 50% retracement at $108.12 and the 200-day EMA at $113.17 remain significant resistance levels for Solana at the moment.
However, failure to close above the 50-day EMA could reinforce the bearish narrative, with the first major support level at $77.12.
A drop below this support could see SOL retest the more structural floor defined by the swing low anchor near $67.50, where buyers would be expected to show stronger interest.
