As the overall market capitalization of the cryptocurrency market approaches the historical high of $4 trillion, Bitcoin (BTC) has led the way by refreshing its historical record, reviving market sentiment. Among the altcoins that have performed well in this cycle is Solana (SOL), which is also beginning to show signs of restarting an upward trend.
🔥 Solana surged nearly 10% in a week, returning to the key resistance area.
According to market data, SOL's increase in the past week is nearly 10%, challenging the previous key resistance level again. The token has been recovering since the second quarter of 2024, maintaining an overall trend within the $140 to $180 fluctuation channel, reflecting the market's continued recognition of its long-term value.
However, last month, due to geopolitical tensions, the crypto market saw a brief pullback, and SOL followed the broader market down, temporarily breaking below the range's bottom and looking for support in the $120-$130 area.
The good news is that this support area is performing solidly, with bullish forces quickly intervening, pulling the price back to the upper range of the main area, and it is currently gradually approaching the critical resistance level of $180.
🧠 Technical interpretation: SOL is facing an important node of 'breakthrough or pullback'.
From a technical perspective, SOL is currently in a typical 'box fluctuation breakout expectation zone':
Support level range: $120 - $130 (previous retracement stop point).
Main fluctuation range: $140 - $180 (fluctuation area over the past two months).
Short-term resistance level: $180 (if broken, may open up space above).
Potential target levels: $200 or even $240 (if following bullish market sentiment).
If SOL successfully breaks above $180 with increased volume and stabilizes above, it is very likely to trigger a new round of main upward wave, especially in the context of increasing market attention on Layer 1 competing chains. With its high throughput and large ecosystem, Solana is still viewed as the top competitor outside of Ethereum.
🐋 Capital movement and fundamentals: The recovery of the Solana ecosystem is underway.
In addition to strong performance on the technical price level, Solana's fundamentals are also continuously improving:
On-chain active user growth: daily transaction counts and active wallet numbers continue to rebound.
DePIN, GameFi, and AI tracks are gradually launching on the Solana chain.
New projects frequently landing in the Solana ecosystem bring new fuel for SOL tokens.
Well-known VCs are reallocating funds to deploy Solana projects, and market enthusiasm is warming up.
Meanwhile, data shows that several institutional wallets have slightly increased their positions in SOL in the secondary market over the past week, indicating an optimistic outlook for the mid-term trend.
📉 Risk warning: If it drops below $140 again, the market may be trapped in extended fluctuations.
Although the current technical structure is bullish, it is still necessary to be cautious of the pullback risks brought by macro fluctuations, policy variables, or sudden changes in market sentiment. If SOL cannot hold the $140 support range, it may test the $120-$130 area again, or even form a downside risk.
Therefore, short-term investors should focus on whether the upcoming price trend can break $180 and maintain a high-level fluctuation or upward structure.
✅ Summary: SOL is in a favorable position and may welcome a critical start point for mid-term trends.
📌 Market capitalization approaches $4 trillion, overall sentiment is bullish.
📌 SOL's technical pattern is brewing a box breakout.
📌 Fundamentals and ecosystem recovery trends are good.
📌 If it breaks $180, it is expected to challenge the $200+ high.
For investors looking to seize the structural trends of a new bull market, Solana, as one of the popular public chain representatives, will become one of the indicators for the altcoin sector.
