Analyst Ali Charts predicts a potential $4,500 SOL rally through a Cup and Handle pattern breakout
Solana’s DEX volumes have dropped from $20B to $6B in the last week
Solana’s stablecoin market cap has reached $13 billion, reflecting increasing network usage
Bloomberg Intelligence has raised Solana ETF approval odds to 90% for 2025
SOL is currently trading in a consolidation phase around the $147-$150 range
Solana (SOL) is currently trading at approximately $149, after finding support around its 50-day Exponential Moving Average (EMA). Market analysts are closely monitoring the cryptocurrency’s chart patterns, with some suggesting a potential for substantial upward movement in the coming months.
Cryptocurrency analyst Ali Charts has identified what appears to be a Cup and Handle formation on Solana’s weekly timeframe. This bullish pattern typically precedes an upward breakout and could signal strength if SOL breaks above the descending trend line forming the handle.
According to Ali Charts, a weekly candle close above this level might trigger a rally toward $4,500, though no specific timeframe was provided for such a move.
However, current market conditions present mixed signals. Solana’s price action has returned from early-week highs to hover near $150, suggesting external pressures that could affect the optimistic outlook.
Trading Volume Decline
One factor directly impacting SOL’s price outlook is the decline in decentralized exchange (DEX) trading volume on its ecosystem. Data from DeFiLlama shows that SOL DEX volumes have fallen dramatically from $20 billion to $6 billion in the last week.
This drop can be attributed to a recent slowdown in meme coin trading activity on the Solana blockchain. Reduced transactions could limit the network’s activity levels, which has historically correlated with Solana price movements throughout prior cycles.
Lower trading activity may reduce investor interest, making it harder for SOL to gain momentum. This presents a challenge for its price rally and potential breakout.
Data from Coinglass on funding rates also indicates that futures traders are bearish in the Solana market. Currently, funding rates have moved into negative territory, suggesting that short positions are growing compared to long positions.
most mentioned ticker in the last hour: $SOL The SOL/USDT chart shows a consolidation pattern with price fluctuating around $147, indicating indecision. Key support is near $146, while resistance is around $150. The RSI is neutral, and the MACD is showing a slight bearish… pic.twitter.com/HR6Osc6Dy4
Despite these challenges, Solana’s ecosystem shows signs of growth in other areas. The value of stablecoins on the Solana blockchain has steadily increased since early February, with the stablecoin market capitalization currently standing at $13.06 billion according to DeFiLlama data.
This stablecoin activity indicates a positive outlook, as it boosts network usage and can attract more users to the ecosystem, driven by Decentralized Finance (DeFi), meme coins, and payment applications.
Another potential catalyst for Solana is the increasing likelihood of a spot Exchange-Traded Fund (ETF) approval. Bloomberg Intelligence reports that the probability of US regulators approving a Solana spot ETF in 2025 has risen to 90%.
Six asset managers — Grayscale, VanEck, 21Shares, Canary, Bitwise, and Franklin — have filed for an SOL ETF and are awaiting clearance from the US Securities and Exchange Commission (SEC).
ETF approvals could make it easier for traditional investors to gain exposure to SOL without needing to purchase and store the cryptocurrency directly, potentially lending more legitimacy to SOL and increasing liquidity.
Technical Analysis
From a technical perspective, Solana is currently in a consolidation phase, with the price hovering near the $147-$150 level. This sideways trading could be a prelude to a more decisive move once a breakout occurs.
Key support exists around the $146 level, which has acted as a crucial buffer preventing further declines. On the upside, immediate resistance is forming near $150, a level that has previously halted bullish advances.
If this resistance zone is broken, it could trigger a stronger upward push. The next resistance to watch would be the $164 level, and if buyers can push past this barrier, it could pave the way for a rally toward $211 and beyond.
The Relative Strength Index (RSI) on the daily chart reads 61, above its neutral level of 50, indicating bullish momentum. However, if SOL closes below $140.30 (its 50-day EMA), the correction could extend to retest its daily support level at $118.10.
At the time of writing, Solana price was trading at $148, down by 1.98% within the last 24 hours. This decline is attributed to higher levels of uncertainty in the broader crypto market.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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