Solana Reaches a Turning Point, Yet Long-Term Trend Indicates New All-Time High

Solana (SOL) has successfully regained key levels during its recent price surge, achieving its highest range in months. However, the cryptocurrency has encountered a significant threshold that may influence its ability to reach new heights amid a market recovery pause.

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Solana’s Rally Confronts a Crucial Obstacle

In recent weeks, Solana’s value has increased substantially, recovering from a dip in April and breaking free from its downward trajectory. Following its all-time high in January, SOL experienced a retracement of up to 63%, hitting a 14-month low of $95 last month.

However, during April’s market recovery, Solana surpassed vital thresholds, reclaiming the $140 resistance as support for the first time in two months. Since then, it has surged nearly 30%, reaching $180 and marking a three-month peak of $183 last week before dropping back to the $170 support level.

Trader Mercury has indicated that Solana has reached a pivotal “HTF inflection point,” which could potentially drive its price back toward new all-time highs if successfully reclaimed. Nevertheless, SOL’s rally has faced setbacks, with its price falling to the $165-$170 range over the weekend.

Reflecting on its recent trends, the trader noted that SOL was pushed back from the significant inflection point, suggesting a necessary retest of the original trend that facilitated its recent gains.

Based on this analysis, he believes that reclaiming the $180 level and eventually breaking out to surpass previous highs is imminent, provided the 4H 200MA trend remains intact.

Similarly, analyst Cas Abbé remarked that Solana’s long-term trend remains strong despite recent fluctuations. He pointed out that the cryptocurrency is over 50% higher since retesting its multi-year ascending trendline, effectively seeming to establish a bottom for SOL.

The analyst believes that January’s ATH for SOL may not represent the peak, while another potential rally could occur later in the year. Trader Coinvo also emphasized the importance of the ascending trendline, noting, “If SOL keeps embracing this trendline, significant gains are likely ahead!”

SOL Aims for a $200 Breakout

During the weekend, analyst Rekt Capital claimed that Solana has entered its Post-Halving Re-Accumulation Range on the monthly chart, successfully retesting the $120-$135 range as support in recent months.

This significant higher timeframe retest has pushed the cryptocurrency to revisit highs within the $165-$175 range. However, he noted that Solana must surpass the upper boundary to confirm a breakout and continue its upward trajectory, which it was unable to accomplish during last week’s close.

SOL needs to break through and retest this upper boundary, establishing it as new support, with a Weekly Close above this level to escape the critical range. Additionally, previous performance indicates that a price breakout could be imminent.

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Based on its Q4 2024 price movement, if Solana can solidify support around the resistance at the Range high, the likelihood of a price surge increases significantly. The analyst mentioned that a successful breakout from this zone could drive SOL’s price towards the $200-$210 range.

“SOL just needs consistent stability at the Range High resistance to indicate that this area is turning into support,” Rekt Capital concluded.

At this moment, Solana is trading at $165, reflecting a 3.1% drop in the daily timeframe.