Solana (SOL) has dropped 4.2% this week, but with trading volume increasing and a potential $900 target on the horizon, could SOL be preparing for a major breakout?
Solana (SOL) has encountered short-term pressure, slipping 4.2% over the past week as the broader market cooled off.
Despite this, trading volume has surged by 19.4% in the last 24 hours, signaling growing interest even as the price edges down by 0.7%.
Momentum appears to be building for a potential breakout, especially with respected analyst TradingShot predicting a possible surge to $900 if SOL can overcome the $170 resistance level.
With increased attention and rising network activity, Solana could be positioning itself for the next major upward move.
This resistance level coincides with Solana’s 50-week moving average, a crucial threshold that has historically capped upward movements, making it a key level to monitor.
According to TradingShot, the $97 mark serves as important support in the event of a pullback.
However, should SOL manage to break decisively above $170, it could first surge to $350 to test the upper boundary of its rising wedge. If broader market momentum continues, the price could even rally toward $900.
TradingShot’s price prediction is supported by Solana’s steady uptrend since December 2022, with price action consistently respecting the rising wedge pattern.
Further reinforcing the bullish outlook, the weekly Relative Strength Index (RSI) has crossed above the signal line, indicating growing positive momentum.
In addition, market sentiment is shifting in favor of risk assets. The Trump administration’s recent signals of willingness to negotiate on tariffs have helped ease geopolitical tensions, while a 0.3% contraction in the U.S. economy during Q1 could prompt the Federal Reserve to consider rate cuts—historically a favorable development for high-growth assets like Solana.
This Bullish Signal Can Also Result in Significant Gains for SOL
Examining Solana’s daily price chart, the price broke above the 21-day exponential moving average (EMA) last month, accompanied by strong trading volumes.
Solana’s price has recently found support at the 21-day EMA as it nears a critical resistance level—the 200-day EMA.
A bullish crossover between the 21-day and 200-day EMA would signal a strong buy, similar to the last time this occurred, which resulted in a nearly 66% price increase. If history repeats, a breakout above the 200-day EMA could push the price to at least $270, potentially setting a new all-time high as market sentiment continues to improve.
However, momentum indicators are currently showing mixed signals. The RSI has dipped below the signal line, and the MACD histogram has registered its first negative readings since April 11.
Key support levels to watch are $143 (EMA support) and $133 (horizontal support). If Solana can hold above these levels, the uptrend would remain intact.
While $900 may not be achievable in the short term, strong gains remain possible this year if SOL can break through these key resistance levels in the coming days.
For investors looking to diversify beyond short-term price action, early-stage presales like Solaxy (SOLX) could present even greater upside potential.
Solaxy Surges Past $33M to Deliver a Crucial Layer-2 Fix for Solana
The Solana blockchain has experienced increasing pressure during periods of peak usage.
Solaxy (SOLX) is designed to address this issue with a dedicated Layer-2 scaling solution, aimed at alleviating congestion and enhancing performance. This solution may soon be integrated with leading wallets and exchanges, offering a potential boost to the Solana ecosystem.
Solaxy (SOLX) enhances Solana’s efficiency by bundling transactions offline in a side chain before sending them to the mainnet, alleviating congestion and improving performance.
Since its presale launch in December last year, the project has raised nearly $34 million in just five months, demonstrating strong investor excitement about the potential impact of a Solana Layer-2 solution on the broader ecosystem.
As the Solaxy protocol gains traction, demand for its native asset, $SOLX, is expected to surge. Early buyers stand to benefit the most from this growing demand and the significant returns it could generate.
To buy $SOLX at its discounted presale price of $0.001714, simply visit the Solaxy website and connect your wallet (e.g., Best Wallet).
Investments can be made using USDT, SOL, or even a bank card—whatever is most convenient for you.
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