Solana’s steady rise and bullish technical patterns suggest a major breakout could be imminent if it clears the critical $183 resistance level.
Solana (SOL) has quietly rebounded, rising to around $177—a nearly 20% gain so far this month, reversing an 18% dip in April. This recovery has sparked renewed interest, especially as technical patterns point toward a potential breakout.
Could SOL be gearing up to surge past its previous highs?
Technical Indicators Hint at a Rounding Bottom Breakout
SOL’s recent price action has formed a rounding bottom pattern, with a key resistance near the $180 zone. This pattern, which resembles a U-shape, suggests a transition from a bearish to a bullish trend.
According to technical analysis, a daily close above $183—near the 50% Fibonacci retracement level based on the January to April price range—could trigger a significant breakout. The projected target for this move is around $257, aligning closely with the 78.6% Fibonacci level at $262.
Adding to the bullish sentiment, Solana’s 50-day and 100-day exponential moving averages (EMAs) have produced a bullish crossover, signaling a potential trend reversal.
However, momentum indicators like the Relative Strength Index (RSI) at 60 and the MACD hovering near a crossover suggest that there’s still untapped bullish potential.
Analyst Sees Long-Term Cup-and-Handle Forming
Veteran analyst Peter Brandt has identified a cup-and-handle pattern forming on Solana’s weekly chart. This longer-term pattern has a neckline near the all-time high at $295. If SOL can break above this level, the projected target could reach an ambitious $518.
However, a failure to close above the $183 resistance mark in the short term might result in a retest of the 200-day EMA around $163.
Ecosystem Growth and Institutional Interest Add Fuel
Solana’s ecosystem continues to grow, with its Total Value Locked (TVL) inching closer $10 billion as more developers and users flock to the network.
At the same time, institutional players, including major firms like VanEck and JPMorgan, project that SOL could reach $500 by the end of 2025, driven in part by anticipation of a Solana-based ETF.
Conclusion
Solana’s current trajectory is supported by technical patterns, including a potential breakout above $183 and a broader cup-and-handle formation.
With institutional backing and a thriving ecosystem, SOL appears poised for a breakout that could propel it to new highs—if it can overcome the crucial $183 resistance level.
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