Solana (SOL) sends a bounce back signal, opening up hopes of conquering new heights.

The prominent altcoin Solana (SOL) is witnessing a slight but hopeful bounce back, starting from August 2nd. After a previous weakening phase, this token has surged nearly 10%, reaching a level of $171.91 at the time of writing.

This price increase momentum indicates that market sentiment is showing signs of improvement, as technical indicators continuously send positive signals about the ability to maintain an upward trend.

The SOL price recovery is accelerating

Data from the SOL/USD daily price chart is sending positive signals, indicating that the upward momentum is gradually bouncing back within the community of investors holding SOL.

A clear example is the Balance of Power indicator (BoP) — a tool that measures the relative strength between buyers and sellers — which is currently maintaining a positive level of 0.76 and continues to show an upward trend. This indicator fluctuates between -1 and +1, with positive values reflecting overwhelming buying power, while negative values indicate dominant selling pressure.

When the BoP reaches a high positive level like now, it means that the buyers are in control, pushing the price closer to the daily high. This trend reinforces confidence in the bounce back of SOL's price, while also indicating the return of positive capital flow in the market.

The BoP of SOL | Source: TradingViewIn addition to the price bounce back, the relative strength index (RSI) also recorded an upward trend, further reinforcing the positive outlook for SOL. Currently, the RSI is at 51.65 and is gradually rising — a sign that buying pressure is increasing sustainably.

RSI is an important technical indicator used to assess whether an asset is in an overbought or oversold condition, with a scale ranging from 0 to 100. When RSI exceeds the threshold of 70, it often signals the potential for a downward correction due to overbuying, while a level below 30 indicates that the asset may be undergoing a sell-off and is about to enter a bounce back phase.

With the RSI currently at a neutral level and continuing to rise, the market is gradually leaning towards the bulls. The bullish momentum is being rebuilt, opening up room for a new breakout if the demand continues to be sustained.

SOL price approaches a decisive moment

A strong buying wave could be the catalyst that helps SOL break through the nearest resistance level at $176.33. If this price level is conquered with enough momentum, this cryptocurrency could completely surpass the important psychological threshold of $180, thus opening up new growth potential.

Daily chart of SOL/USDT | Source: TradingViewHowever, this upward momentum still carries risks if market sentiment suddenly reverses or profit-taking pressure increases. In the scenario where the bears regain control, SOL could turn back down to the support area of $158.80 – erasing most of the accumulated gains from the recent bounce back.

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