Solana holds $78 after BONK breach, and the market keeps a close eye on key resistance level of $80

Solana (SOL) is trading at US$78, continuing a rebound from a July 18 low near US$74.

The cryptocurrency has gained about 5% from recent lows, but remains limited by the upper resistance zone of US$82 to US$84, which suppressed upward momentum in early July.

Key technical levels and bullish signals

SOL currently has an intraday trading range of US$77.42 to US$78.88, slightly below the US$80 level that many traders regard as a key breakthrough. If it continues to close above $80, it will open the way for a swing high of $82.50 to $84 in July. If this level is exceeded, the technical target will move up to $90, followed by $97.60 near the top of the previous range.

On the 4-hour chart, SOL remained above the four major moving averages ($75.55,$76.42,$77.01 and $77.60). This ranking shows that despite the slowing upward momentum, buyers still have short-term control.

The moving average divergence of convergence (MACD) is still above the signal line, strengthening the short-term bullish outlook, but momentum seems to be flattening out.

Cryptocurrency analyst Michaël van de Poppe described the current structure as "holding the low of the range" and added that it may be only a matter of time before SOL hits $120. He continues to express bullish views, even in the recent consolidation phase.

Short Positions and Clearing Range

Data from the clearing tracking platform showed that short positions were concentrated around $78.50,$79.20 and $80.60. If the price exceeds $79, it could trigger significant short liquidation, forcing short covering and providing impetus for SOL to rise above $81.

At the same time, the Chaikin Money Flow indicator was-0.02, slightly below the neutral level. The reading suggests that inflows have not yet fully confirmed recent price increases, meaning higher trading volumes are needed to drive further gains.

Trader Daan Crypto Trades described SOL as being in a "critical high time frame area" and pointed out that the next step will depend on whether the bulls can break through to the $90 range, otherwise they may face the risk of a correction to the middle of $65.

Explanation of Terms: The Flow of Funds Indicator (CMF) is a technical analytical indicator that uses price and volume data to measure pressure on securities trading. Positive values indicate buying pressure, and negative values indicate selling pressure.

Key level descriptions: US$75.55 is the support level (moving average); US$78.50 to 80.60 is the short clearing range; US$80 is the key breakthrough resistance level; US$82 to US$84 is the next resistance level; US$90 to US$97.60 is the further upside target; if the support level falls, it may fall to US$72.50 to US$67.

Impact of BONK Treasury Vulnerability Incident

The Solana ecosystem has been hit by a governance breach targeting the BonkDAO treasury that resulted in approximately $20 million in losses. Attackers invested approximately $4.4 million in BONK tokens, gaining overwhelming support in a rigged governance vote through malicious proposals. The incident did not touch Solana's core blockchain, but exposed loopholes in decentralized decision-making for major Solana-based projects.

Explanation of terms: BonkDAO is a decentralized autonomous organization responsible for managing the treasury and governance of the BONK meme coin ecosystem on Solana, allowing token holders to participate in governance through voting.

On a broader level, external factors also affect SOL performance. Brent crude oil prices rose to $91.01 as geopolitical tensions between the United States and Iran rose again, pushing the U.S. dollar index higher to 101.16. A stronger dollar typically reduces the attractiveness of risky assets, including Solana.

Despite this, Solana's position in regulated markets has strengthened, with U.S. spot Solana exchange-traded funds attracting a net inflow of $8.36 million on July 6, its best one-day performance in nearly two months. There was an outflow of funds during the week, reflecting the continued interest of the institution.

If support at $75.55 weakens, SOL could fall back to $72.50 and may even retest its June low near $67.