Solana has made an impressive recovery, up 25% from its last four-month low of $110. However, market data is giving mixed signals as bulls attempt to sustain this recovery.

Solana has had a rough go of it during the recent market turmoil, with Bitcoin falling below $50,000 after nearly six months, dropping 40% in the last eight days.

The last time Solana experienced a similar daily losing streak was in March 2023, which led to a collapse to the $16 level. However, after the recent decline, market activity suggests that Solana is on the path to recovery.

The daily chart shows Solana rising back to the $140 level this morning and then rocketing to $144. Although this recovery indicates strong bullish sentiment, there have been slight corrections. Solana is up 7% in the last 24 hours and is trading at $140 at the time of writing.

Market analyst Kaleo confirmed Solana’s strength against Bitcoin, even as Bitcoin initiated the recent rally. The SOL/BTC ratio shows that Solana is outperforming Bitcoin in its current recovery phase.

Kaleo notes that Solana’s strength against Bitcoin is impressive and the SOL/BTC ratio has the potential to rise to new highs. He suggests that the 0.01 level of the ratio is a strong target.

Additionally, the Accumulation/Distribution metric on the daily SOL chart shows an upward trend. This indicates that more investors are accumulating Solana and is a positive sign for potential upside momentum; The metric currently shows a figure of 297.43 million SOL.

On the other hand, the Directional Movement Index (DMI) presents a mixed outlook. The positive direction indicator (+DI) dropped to 15.08, indicating a decrease in buying pressure. In contrast, the negative direction indicator (-DI) rose to 35.83, confirming that the bears are maintaining the selling pressure.

In particular, the Average Directional Index (ADX), which measures the strength of the trend, stands at 28. A high ADX above 25 indicates a strong trend, indicating that bear pressure has recently outpaced bull momentum.

Trader JohnnyB thinks Solana’s decline may not be over yet. He expects another decline before a full recovery. He considers this potential decline as a “generation opportunity” and states that this decline could be a suitable entry point for long-term investors.

Going forward, Solana’s current situation confirms that its short-term future requires cautious optimism. The accumulation phase shown by the A/D metric suggests that investors have confidence in Solana’s recovery.

However, the positions of the DMI indicators do not indicate that the bullish momentum has completely overcome the selling pressure yet.

Solana recovered the $132.68 level and turned it from resistance to support. If the bullish momentum gains momentum, the bulls could rally towards the 20-day SMA at $167.07.

However, if the bullish pressure weakens, the $132 support may come to the fore again and if this level is crossed, the $124.85 defense may come into play.