As the crypto drama unfolds, Solana (SOL) is intensifying its breakout efforts, targeting the critical $145 level. With whale accumulations and robust network activity by its side, bulls are ready for action.

Currently, SOL is trading around $138.13, marking a 3% daily increase and pushing its monthly growth past an impressive 40%. After weeks stuck in a downward trend, Solana has decisively broken free, inching closer to a significant resistance zone between $138 and $145. This area has previously been a strong supply zone—now, the bulls are determined to flip it into support.

The current structure of the breakout shows a potential reversal in progress, evident from rising volume and consistently higher lows. However, for a true surge to begin, SOL must close above $145 on a daily basis—a movement that could ignite a climb toward the next major resistance level at $180.

This retest is critical, especially after the setbacks in this region before. Are we on the verge of a significant shift in Solana's trajectory?

Momentum Gained: Key Factors at Play

Solana's ascent isn't happening in a vacuum. Notably, Galaxy Digital has made headlines by withdrawing 606,000 SOL, valued at $79.7 million, from exchanges and staking a hefty 462,000 SOL worth $60 million. This underscores a strong long-term commitment from institutional players.

On the network front, Solana is seeing phenomenal growth. With 29 million active addresses (a 17% increase) and a staggering 374 million transactions to date, it's outpacing other chains. DEX volumes have skyrocketed to $2.27 billion daily, even surpassing Ethereum (ETH), while transaction fees surged by 42% to $7.67 million. Such metrics highlight not just user adoption but a robust expansion of utility across Solana's DeFi and NFT ecosystems, bolstering the sustainability of its upward trend.

Cautious Optimism in Derivatives Market

While the spot market momentum is solid, traders in the derivatives market are treading carefully. Open Interest skyrocketed by 10.71% to $5.57 billion, and Options Volume galloped up 165% to $2.55 million, indicating a keen interest in directional strategies. However, a dip in total volume (down 31.89%) and a 15.20% fall in Options Open Interest suggests a selective approach—traders are possibly hedging their bets or waiting for a clearer signal.

Market Sentiment: A Turnaround in the Air?

Liquidations provide additional insight into market sentiment. Recent data showed short liquidations at $5.57 million, starkly contrasting with just $81.9K in long positions, indicating that sellers were unprepared for the recent surge. This stark imbalance points to significant upward pressure—possibly intensified by a short squeeze.

Despite rising prices, funding rates remain neutral to slightly negative, hinting that many traders are hesitant to dive aggressively into long positions.

Will the Bulls Prevail in Securing a Breakout?

In essence, Solana is standing at a pivotal moment. Its bullish narrative is supported by strong technical indicators, whale-backed confidence, and an explosive rise in on-chain utility. However, the $145 resistance remains a formidable psychological and technical hurdle.

If bulls can turn this resistance into support, SOL could be on the fast track to $180. But until then, the market is in a delicate balance—buyers are gaining ground, but they need that all-important confirmation to take control.