Solana’s price is showing signs of a bullish reversal after confirming a key technical pattern at the $131 support level. Multiple failed attempts to break below this price point suggest strong demand from buyers, increasing the probability of a rally toward the next major resistance at $187.

Decoding the Failed Auction Pattern

The recent price action for Solana (SOL) centers on a “failed auction” forming around the long-term support of $131. In technical analysis, a failed auction occurs when the market tries to push through a significant support or resistance level but can’t sustain the move. Instead, the price quickly reclaims the level, signaling that the underlying order flow is not strong enough to continue in the attempted direction. For Solana, several attempts to break down were met with intense buying pressure, pushing the price back above $131 each time.

This development is significant because the $131 level has become a structural anchor for Solana’s trading range. Each time the price dipped below this swing low, buyers stepped in aggressively, preventing a deeper move toward the next support at $105. The inability of sellers to maintain control confirms that the available liquidity below $131 has been absorbed, establishing it as a critical demand zone. This price behavior validates the bullish interpretation of the failed auction pattern.

Renewed strength in Solana is also supported by broader ecosystem enthusiasm. For instance, recent positive comments from SkyBridge Capital founder Anthony Scaramucci, who named Solana a potential major winner in the tokenization sector, have added a layer of confidence to market sentiment.

What to Expect from Solana’s Price

With support at $131 holding firm, Solana appears to be transitioning from a reactive decline into a potential accumulation phase. If the price remains above this level, the next major upside objective is the $187 resistance. This region previously acted as a rejection area and is now the primary target for any rally emerging from the failed auction.

Failed auction theory suggests that when a price fails to break a key level, the market often rotates sharply in the opposite direction. This happens because traders who bet on the breakdown become trapped and are forced to unwind their positions, which adds momentum to the reversal. In Solana’s case, the failure to push below $131 sets the stage for a move higher, which is further reinforced by positive developments like Solana Mobile’s plan to launch its SKR token.

While current order flow favors an upside scenario, a sustained breakdown below $131 would invalidate the bullish pattern and reopen a path toward the $105 support level. For now, traders are closely watching to see if the defense of $131 translates into a sustained rally.

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