The price of Solana (SOL) has risen 50% from the support level of $100, peaking around $152 this week. The recovery trend is due to the breakout from the descending wedge pattern, accompanied by positive technical and on-chain signals.



This bullish trend has also led to over $20 million in short positions being liquidated, which is related to the popularity of memecoins under market regulatory issues at Solana's decentralized exchange. Currently, multiple bullish price targets for SOL are $180, $205, $263, and $296.

Confirmation of the breakout from the descending wedge pattern

The descending wedge pattern has been compressing the SOL price movement since the end of 2024. This pattern typically signals a bullish reversal, breaking out around $100, followed by a strong rebound. Within just a few days, the altcoin broke above $150, marking the confirmation of an upward trend.

The short-term target is $180, with higher levels at $205, $263, and $296. This breakout is reinforced by a double bottom pattern, with Solana closing above the neckline resistance at $147. This level currently plays an important supportive role.

The MACD indicator also confirms this view. The MACD line on the daily chart has broken above the zero line, indicating positive buying momentum for the first time in weeks.

Short liquidations fueled the price increase of Solana

Moreover, data from SolanaFloor shows that over $20 million in short positions were liquidated within just 24 hours. As the SOL price rose to $152, these positions were forced to close, creating greater buying pressure and accelerating the rise.

It is noteworthy that liquidation events help eliminate over-leveraged traders, who tend to hinder change. This led to a short squeeze, helping the SOL price reach higher resistance areas without obstruction.

This development sharply contrasts with the bearish sentiment before the shorts exited the market, giving the bulls the upper hand. A breakout above the $150 mark will pave the way for further upward movement to other technical resistance levels (including those suggested by Lucky).

The surge of memecoins has sparked positive sentiment

Solana's recent surge is also attributed to the rapid increase in memecoin valuations within the network ecosystem. According to CoinGecko, the market value of memecoins on Solana has grown by 23% in the past 24 hours, reaching approximately $8.7 billion.

On-chain metrics confirm the strong growth of the Solana ecosystem

SOL's price is accompanied by an increase in on-chain activity. According to DeFiLlama, the total locked value (TVL) in the network increased by $500 million in just 48 hours, reaching its highest level in two months. Meanwhile, the trading volume on Solana's decentralized exchange also rose to $2.94 billion.

The strengthening of on-chain metrics coincides with the growing activity of meme tokens and the increasing popularity of DeFi. These trends indicate that investor confidence in the Solana blockchain is growing, both as an asset and as a trading platform.

Meanwhile, the current resistance level is determined at $180, corresponding to the breakout target of the double bottom pattern. The next resistance levels are at $205, $263, and $296.

With the continuous strengthening of market structure and financial liquidity, these targets are feasible for Solana's price.