Solana (SOL) is currently retesting a critical level at $205 after a strong 8% surge over the past 24 hours, pushing the price to $203.5. Traders are feeling optimistic as they observe an ascending triangle pattern forming on the charts, potentially setting the stage for a breakout towards $255.
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According to analyst Lark Davis, Solana has faced rejection three times at the $205 level, but the formation of higher lows and sustained buying pressure indicate a building momentum.
Davis explained, “If volume continues to increase during this test, the setup clearly points towards $255 as the next target.” The robust trading activity, with over $9 billion in daily volume, highlights strong market participation.
Technical Indicators Reflect Solana Stability
Market data reveals that Solana is not yet in overbought territory, with its Relative Strength Index (RSI) at 55.63, allowing room for further upward movement without immediate selling pressure.
The MACD indicator has confirmed a bullish crossover, aligning with the positive momentum.
On-chain signals strengthen the case for upside potential, as Solana’s trading volume continues to rise, and clean rebounds from the ascending trendline demonstrate active buying during dips.
Market analyst Alex Clay highlighted a completed W-bottom pattern on the SOL/BTC chart, suggesting that Solana might outperform Bitcoin in the short term, similar to Ethereum’s recent performance.
Outlook: Potential Breakout to $255
The $205 level has become a crucial battleground for traders. A confirmed breakout above this level, supported by strong volume and sentiment, could propel Solana towards the technical target of $255.
SOL's price trends to the upside on the daily chart. Source: SOLUSD on Tradingview
The overall crypto market environment favors SOL, with Ethereum’s rally shining a spotlight on high-potential altcoins.
Analysts warn that a failure to maintain above $205 could delay the upward momentum, keeping Solana within its current consolidation range. With increasing institutional interest in Solana and record network activity, the token remains a closely monitored asset in the market.
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Currently, all eyes are on the $205 level, which could determine Solana’s next significant move upwards.
Cover image from ChatGPT, SOLUSD chart from Tradingview