Solana could experience significant changes in its price this weekend due to the token sale that PumpFun will conduct. As I reported, PumpFun will launch a $4 billion ICO on July 12 with the aim of expanding meme coin activity on its platform, which will extend to the Solana blockchain.
This token sale comes at a time when the cryptocurrency market as a whole is on the rise, fueling a bullish sentiment towards Solana's price. At the same time, a rounded bottom has formed, indicating that further gains may be on the way, as the decline that SOL has experienced in recent months is likely coming to an end.
One of the signals confirming this bullish outlook is that SOL is testing resistance at $165. The price of SOL has been near this resistance level twice but needs to achieve a strong close above it to confirm that bullish traders have the advantage.
Once this resistance level is surpassed and Solana begins to rise, the price could extend its rally with an increase of more than 30%, taking the price not only to $200 but to $216, the highest level since early February 2025.
However, for this bullish prediction of Solana's price to come true, the token must surpass the resistance at the 200-day simple moving average (SMA) of $164. History shows that whenever SOL surpassed this SMA, it experienced strong gains for months before retracing, increasing the likelihood of it rising to $200.