Is Solana ready to breakout? Buyers may be eyeing a new ATH IF…

At the moment, Solana (SOL) in the process of forming a "cup and handle" pattern and shows signs of preparing for a strong breakout in the coming weeks. If successful, this breakout could create great momentum, helping SOL set new historical highs on the price chart.

However, in the short term, the bulls still face many challenges at the resistance level of $180. The price action in the past few days shows that SOL has continuously been rejected at this level. Similar to other altcoins, the bullish momentum of SOL has significantly weakened over the past two weeks.

Source: Bitcoin MagazineA recent report indicated that Solana is attracting inflows, which is clearly reflected in the price chart. The CMF (Chaikin Money Flow) indicator shows that the capital flow remains positive, while the OBV (On-Balance Volume) indicator notes that although the price was rejected at the resistance level, the selling pressure did not become too significant.

The moving averages also indicate positive signals for a bullish trend. According to analysis from Bitcoin Magazine, buying pressure may soon be strong enough to help the price break through the resistance level of $180.

Can the Solana bulls take control?

The average size of spot trading orders is calculated by dividing the total trading volume by the number of trades made. An increase in whale activity – when trading volumes are large but the number of trades is low – is often a sign of strong involvement by large investors.

Source: CryptoQuantIf this happens near important long-term support zones, it could signal an accumulation phase. Conversely, whale activity during price surges or when prices reach key levels may indicate selling from large investors.

In the past few weeks, whale activity has not recorded a significant increase, despite the relentless efforts of the bulls to break the resistance level of $180. This may indicate that large investors are expecting prices to continue rising in the future.

Source: CryptoQuantFinally, the CVD (Cumulative Volume Delta) indicator for spot buyers has maintained a neutral stance for most of May. However, on May 25, this indicator signaled that buying volume from buyers began to dominate. This is just the beginning, and a sustained trend with dominant buyer CVD will be necessary to confirm that a strong bullish move is approaching.

The last time the CVD indicator shifted to a buyer's advantage was in mid-November, when Solana surpassed the $180 threshold. This occurred after nine months of fluctuating below a key resistance level, setting the stage for a breakout rally.

Mr. Teacher