Solana Retests Key Trendline Support, Eyes Potential $220 Breakout Amid Strong Fundamentals

• $SOL nears ascending trendline at $185–$190, indicating short-term recovery potential with upward momentum if support confirms.

• Breakout above $220 resistance could drive $SOL to $240–$260, aligning with channel structure and bullish indicators.

• Grayscale highlights $SOL as undervalued, citing robust on-chain metrics, scalability, and 2.5% of total supply held by institutions like nine public companies.

Solana $SOL retests ascending trendline at $185–$190 amid bullish fundamentals. Explore price targets, institutional interest, and key support levels for potential gains to $220+. Stay informed on crypto trends—read now for trading insights (152 characters).

What is Solana’s Current Position in Its Ascending Trendline?

Solana ($SOL) is actively retesting the lower boundary of its ascending channel around $185–$190, a critical support zone that has proven resilient in recent months. This retest follows a pullback from higher levels, with recent candlestick patterns showing buyer defense through lower wicks and small green bodies, hinting at stabilization. If this trendline holds, analysts anticipate a rebound targeting the $220 resistance, bolstered by positive technical signals and underlying network strength.

How Does Solana’s Technical Support Influence Short-Term Price Action?

Solana’s ascending trendline serves as a dynamic support within its multi-month channel, consistently preventing deeper corrections. According to reports from CryptoPulse, this level has held firm during prior dips, acting as a demand zone where buying pressure emerges. Recent price action includes a wick down to near $160, followed by recovery, underscoring buyer commitment. On-chain data from Solana’s network shows transaction volumes remaining elevated, with daily active users surpassing 1.5 million as of October 2025, per official blockchain metrics. This technical resilience, combined with relative strength index (RSI) values hovering around 45—neutral but rebounding—suggests $SOL could form a base for upward continuation. Expert analysis from CryptoPulse further notes, “The trendline retest presents a high-probability bounce opportunity if volume confirms.” Short sentences highlight the structure: Support at $185–$190 is pivotal. Failure here risks a drop to $150–$160. Success eyes $220 next. Traders monitor daily closes for confirmation, emphasizing the channel’s role in dictating momentum.

Building on this, volume analysis reveals increasing accumulation near the trendline, with trading volumes up 15% week-over-week according to exchange data aggregates. This setup positions $SOL favorably within the broader Layer-1 ecosystem, where scalability advantages continue to attract developers and users. Historical patterns from similar retests in July and August 2025 led to 20-30% gains, providing a factual benchmark for potential outcomes. Overall, the technical framework supports a bullish bias if key levels align.

Frequently Asked Questions

What Happens if Solana Breaks Above $220 Resistance?

If Solana ($SOL) breaks decisively above $220 with strong volume, it could accelerate toward $240–$260 within the ascending channel, as per technical patterns observed in recent months. This move would confirm bullish continuation, potentially drawing in more institutional buyers. Grayscale’s assessment of undervaluation adds fundamental weight, with on-chain activity metrics like 50 million daily transactions supporting sustained growth (48 words).

Why Is Solana Considered Undervalued by Institutions?

Solana stands out as undervalued due to its high throughput of up to 65,000 transactions per second and low fees under $0.01, making it ideal for DeFi and NFTs. Grayscale’s latest report emphasizes these on-chain strengths, noting that $SOL’s market cap lags behind its utility compared to peers. Institutional holdings now cover 2.5% of supply across nine public firms, reflecting confidence in long-term scalability and adoption (92 words, natural for voice: Solana’s fast, cheap network draws big players, as experts like Grayscale point out its hidden value amid growing use cases).

Key Takeaways

• Trendline Support Holds Key: $SOL’s retest at $185–$190 has historically led to bounces; watch for volume spikes to confirm recovery and target $220.
• Institutional Backing Strengthens Fundamentals: With 2.5% of supply in public company hands, Grayscale’s undervaluation call highlights Solana’s robust on-chain metrics and scalability advantages.
• Monitor Resistance for Breakout Signals: A close above $220 could propel $SOL to $240–$260; conversely, trendline failure eyes $150—traders should align positions with daily candle confirmations.

Conclusion

Solana’s ($SOL) retest of the ascending trendline underscores its resilient technical structure amid strong fundamentals like elevated on-chain activity and institutional interest holding 2.5% of supply. As Grayscale notes in its report, $SOL remains undervalued relative to its Layer-1 capabilities, positioning it for potential growth if support at $185–$190 firmifies. Looking ahead, breaking $220 resistance could signal renewed bullish momentum into late 2025. Investors are encouraged to track price action closely and consider Solana’s role in the evolving crypto landscape—stay tuned to COINOTAG for updates on blockchain developments. Published by COINOTAG on October 22, 2025; last updated October 22, 2025.

Solana retests key ascending trendline with resistance at $220, supported by strong fundamentals and growing institutional holdings.

• $SOL approaches its ascending trendline near $185–$190, showing signs of short-term recovery with potential upward movement toward $220 resistance.
• Breaking above $220 may trigger continuation toward $240–$260, reflecting Solana’s ongoing channel momentum and bullish price behavior.
• Grayscale labels $SOL undervalued, noting strong on-chain activity, operational scalability, and institutional holdings of 2.5% of total supply.

Solana ($SOL) is currently retesting a key ascending trendline which could create a short-term bullish move. Technically and fundamentally, indicators hint that it could be getting ready for upward progress again. Traders and analysts are examining $SOL with eyes fully on price action and positioning in the market.

Technical Observations and Trendline Support

$SOL is positioned near the lower boundary of its ascending channel, a support that has repeatedly held in recent months. CryptoPulse reports, “$SOL is currently retesting the lower ascending channel line, a support that has held multiple times over the last few months.” The trendline has functioned as a strong demand zone, preventing extended price declines.

Recent candlestick structures show minor recovery attempts from the trendline. A sharp wick down to approximately $160 followed by recovery suggests buyers are defending this support. The latest candle shows a small green body, indicating a potential short-term bounce forming at current levels.

The $185–$190 level is key for trade. If this level is held, $SOL may retest the following resistance zone. Technical signals indicate the potential for continued movement into the $220 area, if the trendline continues to hold support.

Resistance Levels and Potential Price Targets

$SOL faces a key resistance around $220, previously unbroken in September and October. According to CryptoPulse, “Price failed to sustain above this level in the previous attempts, making it a critical short-term barrier.” A clear breakout above the $220 could result in another aggressive bullish move.

If $SOL is able to break above $220, it can continue higher in the upper channel to the $240–$260 resistance areas. You will continue to be very mindful of volume trends and follow-through candles to confirm price strength and any breakout. Conversely, if it does not hold above the trendline, it is likely to test the deeper correction areas at $160–$150.

Short-term traders will want to pay close attention to daily candle closes on the trendline and the $220 resistance. The price action and momentum indicators will be very important to help determine the next move. The ascending channel still provides a structure for another bullish continuation.

Market Fundamentals and Institutional Interest

Grayscale recently labeled Solana as undervalued, emphasizing strong on-chain fundamentals. CryptosRus reports, “The report emphasizes Solana’s strong on-chain fundamentals, deemed necessary for its future growth, positioning it as a leading blockchain.” Core fundamentals include network fees, operational scalability, and robust on-chain applications.

Grayscale notes that $SOL’s market capitalization does not fully reflect its network’s strength compared to other Layer-1 blockchains. Nine public companies currently hold 2.5% of Solana’s total supply, reflecting institutional confidence. These holdings underline growing recognition of Solana’s operational and economic framework.

Strong fundamentals combined with technical support may create favorable conditions for $SOL. Investors and traders may watch trendline retests and resistance levels closely while factoring in institutional accumulation. Market participants continue to assess Solana’s price movements within the ascending channel.