Solana (SOL) Price Prediction & Analysis: Is $420 Target After Recent Breakout?
TLDR
Solana price rallied 7% to $140 with trading volumes surging 85% to $2.56 billion
SOL broke through a key resistance level at $137, signaling the end of a downtrend
Market analysts are forecasting a potential rally toward $160-$420
White House narrowing approach to April 2 tariffs is supporting crypto market recovery
Donald Trump posted support for the TRUMP memecoin on Solana, boosting related tokens
Solana’s price has shown strength in recent days, breaking through key resistance levels and gaining significant momentum. This rally comes amid broader crypto market recovery and several positive developments for the SOL ecosystem.
The sixth-largest cryptocurrency by market cap has been trading between $120-$140 for the past two weeks. However, recent price action suggests this range-bound trading may be coming to an end.
Data shows that SOL price reached $140, marking a 7% increase in a single day. This move was accompanied by an 85% surge in daily trading volumes to $2.56 billion, highlighting renewed investor interest.
On-chain metrics reveal growing adoption of the Solana network. The ecosystem now boasts more than 11.09 million addresses holding SOL tokens, reaching a fresh all-time high.
Technical analysts have identified a symmetrical triangle pattern on the 4-hour timeframe. This pattern suggests SOL is on the verge of a significant breakout after successfully closing above the upper trendline at $132.
The recent price action has broken through the crucial resistance of $137. This technical milestone marks the end of a persistent downtrend that began after the January 20th highs, sometimes referred to as the “Trump highs.”
Several market experts have turned bullish on SOL following this breakout. Forecasts range from a conservative target of $152 (representing a 20% increase) to more optimistic projections of $420 in the near future.
Data from Coinglass shows that SOL futures open interest has increased by 8.6% to $5 billion. The 24-hour liquidations have also surged to $8.82 million, indicating active trading in SOL derivatives.
The Relative Strength Index (RSI) on the daily chart has recovered from oversold conditions. It currently reads 49, pointing upward just below its neutral level of 50, suggesting diminishing bearish momentum.
The Moving Average Convergence Divergence (MACD) indicator on the daily chart showed a bullish crossover last week. This technical signal is often interpreted as a buy signal and suggests continued upward momentum.
Extreme Fear?
This price surge comes as long-term holders show signs of extreme fear. Crypto analyst Ali Martinez observed this sentiment, noting that historically, such periods often present opportunities for strategic investors to accumulate.
External factors are also supporting Solana’s price action. Reports suggest that the White House is narrowing its approach to tariffs set to take effect on April 2, likely omitting industry-specific tariffs.
This news has fueled a rise in risky assets like cryptocurrencies. Bitcoin broke above $87,000, with Solana and other altcoins following suit during early Asian trading sessions.
In a development that caught the attention of the crypto community, Donald Trump posted support for the TRUMP memecoin on his social media platform Truth Social. He wrote, “I LOVE $TRUMP — SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!!”
This endorsement led to a 17% spike in TRUMP memecoin prices, reaching $12.51. However, the token remains down 85% from its all-time high of $77.24 set in January, according to Binance data.
The broader context for Solana includes comments from co-founder Anatoly Yakovenko. He expressed skepticism about the necessity of Layer 2 (L2) scaling solutions, suggesting that Layer 1 (L1) blockchains like Solana can deliver superior performance.
According to Yakovenko, L1 solutions offer greater speed, lower costs, and enhanced security compared to L2 alternatives. He stated that L1s “aren’t slowed down by a glacially moving L1 data availability stack.”
If SOL maintains its upward momentum, analysts suggest it could extend its rally by 15% from current trading levels. This would put the next target at the daily resistance level of $160.
However, traders should be aware of downside risks. If SOL declines and closes below the daily support at $118.10, it could test its March 11 low of $112.
For now, the technical outlook remains positive with multiple indicators suggesting continued upward momentum for Solana price in the short to medium term.
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Filed under: News - @ March 24, 2025 10:20 am