Solana $SOL is currently navigating a critical technical juncture following a breakout above a long-term descending resistance trendline. While bullish momentum has pushed the asset beyond the $149.71 level, the market now awaits confirmation through a key retest. The ability to hold this newly established support zone will likely determine Solana’s next move toward the $154.17 resistance.
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Breakout from Descending Resistance Signals Bullish Intent
On the 4-hour chart, Solana recently completed a breakout from a descending trendline that had capped price action since late May. This resistance line had repeatedly rejected upward moves, most notably around June 7 and June 14. A strong rebound from sub-$130 levels on June 24 set the stage for the current breakout, with SOL climbing steadily to test the $151–$154 range.
The breakout occurred with a sharp upward move through the $149.71 resistance, marking the resolution of a compression pattern formed by converging trendlines. This wedge formation had gradually intensified price pressure, ultimately leading to the breakout.
As of the latest session, Solana trades near $151.56, down 1.15% over the last four hours, as it consolidates slightly above the breakout zone.
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Former Resistance Turns Support Amid Mixed Sentiment
The area between $149.50 and $151.00, previously a resistance band, has now become immediate support. Marked in green on the chart, this zone is critical to confirming the validity of the breakout. A successful retest could reinvigorate bullish sentiment and set the stage for a potential move toward the $154.17 resistance level.
However, current price action reveals some hesitation. SOL briefly tapped the overhead red resistance trendline before retreating slightly, suggesting a lack of immediate follow-through. Volume has not significantly increased, indicating that conviction behind the breakout may still be lacking.
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Support Test to Determine Short-Term Direction
The $149.71 level now serves as a pivotal marker. If this support holds, Solana could consolidate and build momentum toward the $154.17 resistance. This level marks the upper boundary of the recent range and coincides with prior reaction highs.
Conversely, a breakdown below $149.71 would shift focus to the next demand zone between $140.00 and $137.00. Highlighted in blue on the chart, this region attracted notable buying interest on June 26 and intersects with an ascending trendline drawn from recent higher lows. A revisit to this zone could offer another potential bounce opportunity but would weaken the current bullish structure.
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Outlook: Critical Retest in Progress
Solana's technical structure now hinges on the ability to maintain support at $149.71. A successful defense of this level would validate the recent breakout and potentially lead to a move toward $154.17. However, failure to hold above support could trigger a deeper retracement back toward the $140–$137 range.
Traders are watching closely as the retest unfolds, with near-term direction likely to be determined by price behavior in the $149.50–$151.00 zone.
