Solana (SOL) has been making waves in the crypto market recently. It is nearing a crucial technical juncture that could signal a shift in its price action.
The odds of Solana’s spot ETF approval are increasing to 85% in 2025. Upcoming unlocks are already priced in, and market participants are closely watching for a potential breakout. This could signal a shift from its current downtrend.
The latest price movements suggest that Solana could surge to as high as $300. This depends on how the technical landscape unfolds by the first quarter of 2025.
Looking at Solana’s price chart, the token has been trading within a descending trendline since November 2023. This downtrend has consistently guided SOL’s price action, but recent price movements suggest a potential breakout.
The price has endured a period of consolidation between the $170 and $200 range, with a few attempts at upward movement in late December and early January.
These signs of strength could indicate a breakout above the trendline. This would set the stage for a bullish continuation toward new price targets. In the short term, this could potentially push the price as high as $250.
The immediate resistance level at $240 is the first major hurdle that traders are keeping an eye on, as this could determine whether Solana’s upward momentum holds or faces rejection.
Derivatives market signals bullish sentiment
Digging further into Solana’s derivatives market, there are great indications of bullish sentiment, although some volume fluctuations have occurred. Increased by 9.53%, the open interest exhibits that more capital is locked in live contracts.
Despite a 20.14% drop in options volume, the long-to-short position ratio across exchanges like Binance and OKX shows a strong bias toward long positions, with a 2:1 ratio favoring those holding long contracts.
Technical indicators support a bullish outlook
Technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) reinforce the idea of a short-term upward trend.
Solana is, therefore, in overbought territory right now, which may result in a brief pullback or consolidation before going higher again. However, the MACD does exhibit a very powerful bullish crossover—the MACD line is above the signal line, which implies that the bullish trend will probably continue in the short term.
