Solana (SOL) could be gearing up for a big move, with analysts spotting signs of a potential rally that might push its price up to $164 in the near term.
In a post shared on X on July 9, crypto analyst Ali highlighted that Solana has been forming a symmetrical triangle pattern on its 4-hour chart. This technical formation, marked by converging trendlines of lower highs and higher lows, signals a period of consolidation that often precedes a strong breakout either upward or downward.
Ali believes the odds favor the bulls this time. He noted that if SOL can decisively break above the upper trendline around the $153 resistance level, it could quickly surge toward the $164 target.
At the time of writing, Solana was trading right around this crucial threshold, raising hopes that a breakout might be imminent.
Technical Indicators Flash Bullish Signs
Momentum indicators are also supporting the bullish outlook. On the 4-hour SOL/USDT chart, the MACD (Moving Average Convergence Divergence) line has crossed above its signal line, with both trending upward. That’s generally a sign that buying interest is increasing, which could help push the price higher.
Another well-known pseudonymous analyst, SDX, pointed out that SOL has been coiling below a descending trendline that’s been in place since the start of the year. A successful breakout and retest of that level could pave the way for an even bigger rally, possibly opening the door to a new all-time high if there’s enough trading volume to back the move.
Fundamentals Fuel Bullish Sentiment
It’s not just the charts looking good for Solana. On the fundamental side, several positive developments are boosting optimism:
- Inclusion in Proposed Trump Media Crypto ETF: Solana was recently listed as one of the featured assets in the Trump Media and Technology Group’s proposed “blue-chip” crypto ETF, as revealed in a filing with the U.S. SEC.
- Spot ETF Developments: Reports suggest the SEC has asked issuers to amend and resubmit applications for spot Solana ETFs by the end of July. Such requests often signal that the SEC isn’t rejecting the idea outright but is open to moving forward if certain conditions are met. Traders typically see this as a bullish sign, potentially unlocking new demand from institutional and retail investors alike.
- Real-World Asset Tokenization Growth: Solana has emerged as a leader in the real-world asset (RWA) tokenization space. Data from Dune Analytics shows that tokenized RWAs on Solana have soared to a record $418 million, accompanied by a 631% jump in active users over the past month.
- Massive Spike in Network Activity: Solana’s daily active addresses skyrocketed to 15.39 million, up from just 3.46 million the day before a staggering 345% increase in network activity.
- Rising Stablecoin Supply: The amount of stablecoins circulating on Solana has been steadily climbing over the past week. Since stablecoins play a vital role in DeFi by facilitating payments, trading, and settlements, their growing presence hints at fresh capital and users flowing into the ecosystem.
Despite all the positive signs, Solana is still trading about 48% below its all-time high of $293 as of press time. However, with both technical indicators and fundamentals aligning, many traders are optimistic that SOL might soon stage a breakout rally.
