Solana's Potential: Examining the Factors that Could Push SOL Prices by 40% Upward
Solana (SOL) has experienced a significant surge in the past week, with the cryptocurrency reaching $181, marking an 18% increase. This latest breakout above a descending trendline has sparked the current rally.
Despite this upward momentum, the Supertrend line at $190.33 still signals an active downtrend, keeping sellers in play. The Relative Strength Index (RSI) for SOL is at 57, indicating that the price is still below the overbought territory, suggesting the altcoin has room to continue its upward momentum.
Whether bulls can clear the $185 mark or face another stall will shape Solana's next chapter in this volatile run. The drop in trading volume may be due to the asset's unclear direction, past performance, and ongoing profit-taking. If the momentum fades and the price fails to close above $185, there is a strong possibility of a decline or continued sideways movement.
The drop in trading volume was evident on August 9, with SOL's 24-hour trading volume dropping by 10% compared to the previous day. CoinGlass data showed $15.18 million in exchange inflows on August 9.
Technical analysis highlights several key points. The $190 resistance level has been cleared, along with a liquidity cluster near $203, which also acted as a "weak high," indicating some resistance was tested and overcome recently. The measured move from the cup-and-handle pattern targets a range near $218–$220 as the next resistance zone after breaking the $190 neckline. Strong support is noted at $115, with the $140-$150 area serving as a springboard for the current bullish rally.
On-chain metrics and fundamental drivers also support this bullish outlook. Increased trading volume (87% rise in July) and growing market cap (around $109-110 billion) signify robust investor and institutional interest. Solana's activity in decentralized finance (DeFi), NFTs, and staking prospects contribute to demand and price strength. The relative strength of SOL versus competitors (notably flipping BNB in market cap briefly) emphasizes growing market confidence.
Price forecasts vary somewhat. Some platforms predict SOL could reach up to $408 by year-end 2025 after surpassing previous all-time highs around $294, reflecting a highly bullish scenario. More conservative outlooks put the maximum 2025 price around $181–$201, with risks of downside to $160 in bearish conditions. Influencers and technical analysts remain optimistic, with some expecting $250 in the near term (Q3 2025) based on momentum and market positioning.
In summary, the immediate key resistance levels are near $218–$220, preceded by support zones at around $140–$150 and $115. Overcoming these resistances coupled with strong on-chain activity and declining exchange inflows as implied by price structure suggests continued upside potential, while liquidation clusters around $203 indicate areas of trading friction recently surpassed. A daily close above $185 is crucial for a push toward the $256 target, a near-40% upside.
- Investors might consider technical analysis when deciding to buy Solana (SOL), as the measured move from the cup-and-handle pattern indicates a potential next resistance zone near $218–$220.
- The decline in trading volume on August 9 may indicate cumulative profit-taking or uncertainty, as shown by the $15.18 million in exchange inflows on that day, according to data from CoinGlass.
- In contrast to the drop in trading volume, on-chain metrics and fundamental drivers, such as increased trading volume, growing market cap, Solana's activity in decentralized finance, and growing market confidence, suggest robust investor and institutional interest.
- Although some platforms predict a bullish $408 price target for SOL by year-end 2025, more conservative forecasts put the maximum 2025 price around $181–$201, highlighting the inherent risks and volatility associated with investing in cryptocurrencies like Solana.
