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Solana price risks a dead cat bounce as recent rally lacks volume

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Solana price risks a dead cat bounce as recent rally lacks volume - 1

Solana’s price has rebounded from key support, but weak volume and heavy overhead resistance raise the risk that the current rally is only a temporary dead cat bounce.

Summary

  • $70 high-timeframe support triggered the bounce, but structure remains bearish
  • Price is entering major resistance near $87, with VWAP and Fibonacci confluence
  • Low volume weakens the rally, raising rejection and downside rotation risk

Solana (SOL) price action has staged a short-term recovery after respecting a major high-timeframe support zone near $70. While the bounce has provided brief relief following sustained selling pressure, the broader technical picture suggests caution is warranted.

The recent advance has occurred on below-average volume and is now approaching a dense cluster of resistance, increasing the probability that this move may be corrective rather than the start of a sustained trend reversal.

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As Solana trades higher into key technical barriers, market participants are closely watching whether buyers can generate enough momentum to shift structure, or whether sellers will reassert control and rotate price back toward recent lows.

Solana price key technical points

  • $70 high-timeframe support has held, triggering a short-term bounce
  • Current price is entering major resistance confluence, including VWAP and Fibonacci
  • Low volume undermines the rally, increasing dead cat bounce risk
Solana price risks a dead cat bounce as recent rally lacks volume - 1
SOLUSDT (1H) Chart, Source: TradingView

From a higher-timeframe perspective, the $70 level has proven to be a significant area of demand for Solana. This zone has acted as a structural support level, and the recent defense of this region allowed price to stabilize and push higher on the intraday timeframe. Following the bounce, Solana reclaimed its local point of control, signaling short-term acceptance and encouraging a brief bullish reaction.

However, while the bounce itself is technically valid, it must be viewed within the context of the broader trend. Solana remains in a bearish market structure, and isolated rallies from support do not automatically imply a trend reversal, particularly when other confirming signals are absent.

Resistance confluence caps the upside

As the price moved higher, Solana is now trading into a well-defined resistance zone around the $87 region. This area represents a significant confluence of technical factors, including the value area high, VWAP-based resistance, and the 0.618 Fibonacci retracement of the prior decline. Together, these levels form a supply zone where sellers are likely to become active.

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Historically, when price rallies into such confluence zones without strong volume confirmation, the probability of rejection increases. This is especially true in bearish market environments, where rallies often serve as opportunities for distribution rather than accumulation.

Weak volume signals fragile rally

One of the most important concerns surrounding the current Solana rally is the lack of bullish volume. Despite the price moving higher, participation has remained below average, suggesting that large buyers have not meaningfully stepped in. In healthy trend reversals, a rising price is typically accompanied by expanding volume, reflecting growing demand and conviction.

In this case, the lack of strong volume suggests the move higher may be driven by short-covering or opportunistic buying rather than sustained accumulation. This dynamic aligns closely with the characteristics of a dead cat bounce — a temporary recovery within a broader downtrend that ultimately fails.

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Bearish structure remains intact below resistance

As long as Solana remains below the current resistance cluster, the broader bearish market structure remains unchanged. Failure to reclaim and hold above this zone would keep downside rotation as the higher-probability scenario. A rejection from resistance would likely send the price back toward the $70 support, setting up a potential retest of that level.

Repeated tests of support often weaken demand, increasing the risk of a breakdown if buyers fail to defend the zone convincingly. As a result, how price reacts to any return to $70 will be critical in determining whether Solana can stabilize or if further downside is likely.

What to expect in the coming price action

From a technical, price action, and market structure perspective, Solana’s current rally appears vulnerable. The combination of low volume and heavy resistance overhead suggests that downside risk remains elevated. A rejection near current levels would favor a rotation back toward $70, keeping the bearish structure intact.

For the outlook to improve meaningfully, Solana would need to break above resistance with strong volume confirmation and sustain acceptance at higher value. Until that occurs, traders should treat the current move cautiously and remain focused on price behavior as Solana navigates this critical resistance zone.

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Peraso (PRSO) Stock Soars Over 100% on Defense Contract Win

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PRSO Stock Card

TLDR

  • Defense contractor InTACT from Israel has chosen Peraso’s 60 GHz millimeter-wave technology to power a military-grade drone Identification Friend or Foe (IFF) system.
  • The system enables military personnel on the ground to differentiate between friendly and hostile drones using mutual authentication protocols.
  • Peraso’s beamforming transceiver chips provide directional, low-power communications that are difficult to intercept or jam.
  • The collaboration between Peraso and InTACT has spanned more than two years, concentrating on tactical drone identification capabilities.
  • PRSO shares skyrocketed by as much as 115% during Friday’s trading session and continued climbing over 33% in Monday’s pre-market hours.

Peraso Inc. (PRSO) experienced an extraordinary trading session on Friday. The semiconductor manufacturer based in California witnessed its share price soar by as much as 115% during intraday trading following news that its 60 GHz millimeter-wave technology will be integrated into a military drone identification platform.

The agreement centers around InTACT, a defense contractor headquartered in Israel. InTACT has selected Peraso’s semiconductor technology as the foundation for its Identification Friend or Foe (IFF) drone system — a critical tool that enables armed forces to rapidly determine whether an approaching drone poses a threat or belongs to allied forces.

The collaboration between these two entities has been ongoing for more than 24 months. This latest announcement signals a significant milestone in their relationship, as the technology transitions toward real-world military applications.


PRSO Stock Card
Peraso Inc., PRSO

PRSO shares jumped over 96% during pre-market hours on Friday before the rally intensified to 115% intraday. The stock settled at a closing gain exceeding 86%. Monday’s pre-market session saw another surge of 33%.

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How the Technology Works

Peraso’s 60 GHz beamforming transceiver chips serve as the core hardware for InTACT’s IFF platform. These semiconductors establish a short-distance, highly directional wireless communication link between unmanned aerial vehicles and troops on the ground.

The directional characteristics of the signal are crucial. This design makes the communications extremely difficult to detect or disrupt in contested electronic warfare scenarios — precisely the environments where such systems are needed most.

Through mutual authentication protocols, ground-based units can verify in real time whether an approaching drone is part of friendly operations. In modern combat zones saturated with drone activity, this identification capability provides significant tactical advantages.

CEO Ron Glibbery characterized the technology as “designed to provide a secure, directional communications channel ideally suited for these environments.”

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Peraso’s Recent Business Performance

Peraso has shown signs of business momentum leading up to this defense contract announcement. During Q3 of fiscal year 2025 (concluded September 2025), the company reported revenue growth of 45% on a quarter-over-quarter basis, reaching $3.2 million.

This revenue increase was primarily fueled by record-breaking sales from millimeter wave products — the exact product category featured in this defense partnership.

Despite the sequential growth, total revenue for that quarter still declined 16% year-over-year, falling from $3.84 million in the comparable period.

For a micro-cap semiconductor firm, securing a design win in the defense industry can fundamentally alter investor perception of the company’s prospects. Commercial agreements typically don’t carry the same strategic weight as military deployment contracts.

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InTACT has not revealed the financial parameters of this partnership. Neither contract value nor revenue forecasts have been made public.

The company has confirmed that its beamforming transceiver technology is ready for production and has been officially selected as the hardware platform for InTACT’s system. A specific timeline for military deployment has not been announced.

As of Monday’s pre-market trading, PRSO was up more than 33% following Friday’s impressive 86% closing gain.

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Cardano Called the ‘Most Useless Network in Crypto’ as ADA Down 92% From ATH

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Cardano Called the 'Most Useless Network in Crypto' as ADA Down 92% From ATH


The analyst who made that claim also laid out the most important support levels for ADA going forward.

Popular crypto market observer and commentator Ali Martinez took it to X to criticize the popular blockchain network, Cardano, for its failure to deliver on many of its promises.

Given the project’s popularity, many of the comments below the post lashed out at his harsh words, but there were some that agreed with his statements.

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Most Useless Blockchain?

In a post titled “The Most Useless Network In The Crypto Market,” Martinez began by indicating that the Cardano DeFi ecosystem has never exceeded the coveted $1 billion mark. He added that it has “historically been only a fraction of what is locked on competing platforms like Ethereum.”

A quick double check on DeFiLlama confirms his words, as the Cardano TVL in DeFi peaked last year at roughly $700 million. However, the value has plummeted to $136 million as of press time. In comparison, the TVL on Ethereum is currently at a whopping $55 billion, down from almost $100 billion reached last year.

Solana’s TVL jumped to over $12 billion in September 2025, but it’s down to $6.6 billion as of now. Martinez also compared Cardano’s TVL with newer chains like SUI, which has already surpassed it with $568 million after peaking at $2.5 billion last year.

“Unlike Ethereum, which has built a dominant position in DeFi, or Solana, which has captured high-speed consumer applications, Cardano still lacks a clear use case that consistently attracts users, developers, and investors,” said Martinez.

He added that Cardano was officially launched nine years ago, but smart contracts were introduced in 2021, which allowed its competitors to “build stronger network effects with more developers, applications, and liquidity.”

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He believes Cardano’s research-driven model, which prioritizes academic review and formal verification, slows down product rollouts compared to other blockchains.

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As mentioned above, the community was split after his post, with some bringing out Cardano’s liquid staking capabilities, while others agreed to a large extent with his words.

ADA’s Survival

Martinez also explained that blockchains that reach scale early tend to attract more capital and talent as this is a market “driven by adoption and network activity.” This makes it “difficult for slower-growing networks to catch up once competitors establish a lead,” which could be the main reason behind ADA’s struggles.

The token peaked at over $3 in 2021, but it has fallen from grace since then, currently trading 91.7% away from those levels. Even the 2024/2025 bull rally managed to drive it to as high as $1.30, and it now sits at around $0.25.

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Martinez weighed in on ADA’s performance as well, suggesting that if it breaks the $0.245 support, it could plunge to the next ones at $0.112 or $0.021, which would represent another 50% to 80% decline.

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Oil Cools After Overnight Spike as G7 Eyes Reserve Release

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Oil Cools After Overnight Spike as G7 Eyes Reserve Release

Oil prices pulled back sharply early Monday after reports that Group of Seven (G7) finance ministers planned an emergency call to discuss a coordinated release of strategic crude reserves, giving markets a possible policy response to the war-driven supply shock.

The Financial Times reported that G7 finance ministers planned an emergency call to discuss a possible coordinated release of 300 million to 400 million barrels from strategic oil reserves to calm markets after the war-driven spike in crude prices. The G7 countries consist of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, with the European Union as a non-enumerated member.

On Hyperliquid, crude oil futures rose nearly 25% to as high as about $117 overnight before falling by around 14.5% to roughly $100 after the G7 reports emerged. The reversal suggested traders were quickly repricing the risk of a coordinated reserve release even as the conflict continued to threaten supply.

OIL/USD price chart. Source: Hyperliquid

Bitcoin rebounds after earlier drop

Bitcoin (BTC) also rebounded after an earlier drop during the oil spike. After falling to about $65,725, CoinGecko data shows BTC climbing as high as $67,992.88 at the time of writing, a gain of roughly 3.45% in a few hours.

CryptoQuant analyst Darkfost said in a market note that higher oil prices and Strait of Hormuz tensions could weigh on risk appetite and complicate the outlook for volatile assets such as Bitcoin.

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“Historically, periods when oil prices regain strength often coincide with BTC end-of-cycle phases,” he wrote. 

Source: CryptoQuant

Hyperliquid HIP-3 hits record weekend volume on oil price surge

The episode also underscored how onchain venues can attract demand when traditional markets are closed.

Hyperliquid’s oil-linked contracts had already surged after the initial US-Israeli strike on Iran in late February, with traders turning to decentralized perpetuals for round-the-clock commodity exposure. Hyperliquid data shows that Tradexyz, a trading interface built on Hyperliquid, reached its highest weekend volume of over $610 million on Feb. 28.

Related: Iranian crypto outflows spike 700% after US-Israeli airstrikes

As the conflict escalates, oil prices have continued to rise, and Tradexyz has surpassed its previous weekend record with nearly $720 million in trading volume over the weekend, onchain analytics hub Pine Analytics said in an X post on Monday. 

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“These two waves of demand in the past month on Tradexyz show the platform is absorbing demand for traditional assets by people who don’t have TradFi access, or at points in time when these exchanges are offline,” Pine wrote.