- Solana now targets $175 which is its next significant resistance.
- SOL faces a minor resistance at $135, a price that it failed to reach yesterday.
- Factors currently supporting Solana are short-covering, whale accumulation, ETF demand, and the possibility of a financial turnaround.
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Solana Technical Analysis
caSolana’s charts indicate that its price has broken out of a downtrend that has been going on since early January this year. The downtrend took Solana’s price from $294 to $104 within a period of three months. What had caused this downtrend was the end of the memecoin supercycle, the liquidity crisis in the markets, and Solana’s over-reliance on short-term revenue sources.
Now that Solana has avoided a further crash, its price has taken support at $104. At press time, Solana was at $130 after a failed move to cross $135. Once this minor resistance at $135 is taken out, SOL could easily move to $175 levels. We expect this move to happen around late April.
By the first week of May 2025 (FOMC meeting), Solana might be ready to cross $200 again. However, this rally would only continue further if SOL has a growth strategy that realigns with the current market preference for utility-based coins like RWA, DePIN, and others.
What Factors Are Supporting SOL?
Despite the end of the memecoin supercycle, Solana is still supported by multiple factors:
- Solana currently has 7.3 million in leveraged shorts at $135, beyond which there could be a short squeeze coming.
- Solana saw its first spot ETF launch in Canada, with its US counterparts readying a similar launch soon.
- SOL saw decent whale accumulation in recent times which took benefit of the low price.
- The markets are expected to make a strong recovery in the coming month as the US Fed is expected to cut interest rates.
- Finally, Solana might also see a better future if its realignment strategies are carefully implemented.
The Road Ahead
Solana’s team took benefit of the entire memecoin supercycle which took Solana from $14 to $294 within a couple of years.
Further, Solana’s troubles related to the FTX group was solved as FTX and Alameda have very little SOL left to make any large impact.
However, Solana forgot a basic business strategy of not putting all eggs in one basket. Its over-reliance on memecoins crashed its price down to $104 from $294 within three months.
Now that the memecoin frenzy is gone, Solana finds itself with no major project on its chain except them.
The road ahead for Solana would depend on how fast it could realign itself with new market realities like Real World Assets, DePIN, and other projects with long-term viaibility.
