Solana (SOL) Surges Toward $180 as Bulls Target Breakout Above $165 Resistance

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Key Takeaways

• Trading at $163.50 with an 8.71% weekly gain, Solana shows strong upward momentum.
  
• A push above $165 could signal a continuation toward $180 and $200.
  
• RSI and MACD indicators support further bullish movement, while strong support levels buffer downside risk.

Solana (SOL) is showing strong signs of bullish momentum, currently trading at $163.50 after a 3.66% daily rise and an impressive 8.71% gain over the past week. Trading volume has surged to $6.55 billion—up 35.91%—indicating increasing investor interest. With the $165 resistance zone now in sight, SOL may be gearing up for a major breakout.

SOL Breaks Out of Channel Down Formation

According to CoinCodeCap, Solana has breached a key “Channel Down” formation, suggesting an end to its recent corrective phase. The token is currently oscillating around the 200-day Simple Moving Average (SMA), a crucial indicator for near-term momentum. A confirmed breakout above the $165 resistance level could open the door to a further rally toward $180, with the next significant resistance zone near $200.

Technical Indicators Suggest More Room to Climb

Solana’s Relative Strength Index (RSI) stands at 61.16—below the overbought threshold of 70—implying that the bullish move still has room to grow. The MACD (12, 26) indicator also shows bullish strength, with a histogram reading of 0.15 and the MACD line slightly below the signal line. These indicators reinforce the view that SOL has more upside potential before entering overheated territory.

Key Support and Resistance Levels to Watch

While the bulls remain in control, traders are closely watching the $165 resistance level. A failure to clear this zone could trigger a short-term pullback. On the downside, key support lies at $140, with further support at $125 if a deeper correction occurs. Meanwhile, micro support has been established between $153 and $157.58, acting as a buffer for minor retracements.

Also Read: Robinhood Launches ETH and Solana Staking in the U.S. with Just $1 Minimum

According to CoinGlass data, Solana’s open interest has increased by 3.80% to $7.62 billion, while overall market volume rose by 26.58% to $17.99 billion. The funding rate sits at a positive 0.0090%, indicating a bullish stance from derivatives traders. This data suggests that market participants are positioning themselves for a potential breakout.

Solana’s current price action, coupled with increasing trading volume and bullish technical indicators, suggests a strong possibility of an upward continuation. However, the $165 resistance remains a pivotal level that must be broken convincingly. A successful breakout could propel SOL toward $180 and possibly beyond.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.