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Solana (SOL) is showing strong technical and fundamental signals that could propel its price toward $164, indicating a potential bullish breakout.
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Recent chart patterns and momentum indicators suggest that SOL is consolidating within a symmetrical triangle, with a breakout above $153 possibly triggering further gains.
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According to COINOTAG analyst Ali, a confirmed breakout supported by increasing buying volume could set the stage for Solana’s next upward move, while regulatory developments and network growth add to the positive outlook.
Solana eyes a breakout above $153, targeting $164 amid bullish technical patterns and growing network activity, supported by regulatory progress and ETF inclusion.
Technical Analysis Signals Point to Imminent Solana Breakout
Solana’s price action on the 4-hour chart reveals a symmetrical triangle pattern, characterized by converging trendlines that indicate tightening price consolidation. This formation often precedes significant price moves, with traders closely watching the $153 resistance level as a critical breakout point. Analyst Ali highlights that a decisive move above this threshold could ignite a rally toward the $164 target, reflecting a roughly 7% upside from current levels.
Supporting this outlook, momentum indicators such as the Moving Average Convergence Divergence (MACD) have recently crossed bullishly, with the MACD line moving above the signal line and both trending upward. This technical setup typically signals increasing buying pressure and a potential continuation of the upward trend. Additionally, the Relative Strength Index (RSI) remains in a neutral zone, suggesting room for further price appreciation without immediate overbought conditions.
Descending Trendline and Volume Confirmations Could Accelerate Gains
Further technical insights from analyst SDX emphasize the importance of a descending trendline that has constrained SOL’s price since early 2023. A successful breakout and subsequent retest of this trendline would not only validate the bullish pattern but could also catalyze a stronger uptrend. Volume confirmation is crucial in this context; increased trading activity would signal genuine buying interest, potentially paving the way for Solana to challenge previous all-time highs.
Traders and investors should monitor volume spikes and price action around this key resistance to gauge the sustainability of any breakout. A failure to hold above the breakout level could result in a retest of lower support zones, underscoring the importance of disciplined risk management.
Fundamental Developments Bolster Solana’s Bullish Case
Beyond technical factors, Solana’s fundamentals are gaining traction. Notably, SOL’s inclusion in the Trump Media and Technology Group’s proposed “blue-chip” cryptocurrency ETF, as filed with the U.S. Securities and Exchange Commission (SEC), marks a significant endorsement. This inclusion could enhance institutional interest and liquidity, providing a solid foundation for price appreciation.
Moreover, recent reports indicate that the SEC has requested amendments and resubmissions for spot Solana ETF applications by the end of July. Such regulatory engagement is often interpreted as a constructive step toward eventual approval, which could unlock substantial institutional inflows and broaden market participation.
Network Growth and Real-World Asset Tokenization Drive Adoption
Solana’s expanding ecosystem further supports its bullish narrative. Data from Dune Analytics reveals that tokenized real-world assets (RWAs) on Solana have surged to a record $418 million, accompanied by a remarkable 631% increase in active users over the past month. This rapid growth highlights Solana’s emerging role as a leading blockchain for asset tokenization, attracting diverse participants.
Network activity metrics reinforce this trend, with daily active addresses jumping from 3.46 million to 15.39 million within a single day—a 345% increase that underscores heightened user engagement. Additionally, the steady rise in stablecoin supply on Solana indicates growing utilization for payments, trading, and settlements, which are critical components of decentralized finance (DeFi) ecosystems.
Conclusion
Solana stands at a pivotal juncture where technical patterns, momentum indicators, and fundamental catalysts converge to suggest a potential breakout above $153, targeting $164 in the near term. Regulatory developments, ETF inclusion, and robust network growth collectively enhance the bullish outlook. Investors should watch for volume confirmations and price action around key resistance levels to validate this trend. While risks remain, Solana’s evolving ecosystem and increasing adoption position it well for continued growth within the competitive blockchain landscape.
