Technical Analysis Shows Potential Breakout to $200-220 Range

TLDR

• Solana (SOL) is forming a bull flag pattern that could drive prices to $260, but needs to break above $180 resistance first
• Current price around $187 after recovering from $160 drop, with RSI at healthy 64.30 level
• Declining volumes during consolidation phase suggest caution as buying pressure remains weak
• Solana memecoin trading volume surged 46% in May, reaching $58.7 billion monthly volume
• Multiple analysts see bullish patterns, with one targeting $450 based on hidden divergence signals

Solana is attempting to reclaim its position above the key $180 resistance level for the second consecutive week. The cryptocurrency briefly dropped to $160 from $184 before recovering to current levels around $187.

The daily chart shows SOL forming a textbook bull flag pattern after a strong uptrend. This technical formation typically signals continuation of the prior bullish move when broken to the upside.

A breakout above $180 could propel SOL toward its first target at $200. Further momentum could push the price to $220 if buying pressure sustains.

The relative strength index sits at 64.30, indicating healthy momentum without reaching overbought conditions. This technical indicator suggests room for further upward movement.

However, declining volumes during the consolidation phase raise concerns among analysts. The lack of strong buying pressure could potentially stall any breakout attempt above the $180 resistance.

SOL needs a clear market structure break or decisive bullish breakout above $180 to trigger the next rally phase. Without this catalyst, the upward momentum may falter.

If SOL fails to breach the $180 level, the immediate support zone lies between $140-150. This range represents a daily order block that should provide higher timeframe support during any price correction.

Technical Analysts Eye Fractal Patterns

Crypto trader Robert Mercer identified a price fractal pattern similar to October 2024. He highlighted two critical zones where SOL previously broke past $180 after consolidation periods.

Mercer predicts a breakout above $180 could trigger a sharp upward rally. This would mirror the late 2024 movement that saw SOL peak near $260.

Technical analyst Javon Marks spotted a hidden bullish divergence on Solana’s 3-day chart. This same pattern previously triggered a 1,332% surge in 2024.

We predicted $SOL (Solana)’s price run from $16.12 to $233.8 with precision which consisted of an over 1,332% increase and today, we see signs that could lead prices right back above the $233.8 level.

A move above that level and $450+ comes in play as a target… https://t.co/o39w14yi14 pic.twitter.com/1DEZMfVNy3

— JAVON⚡️MARKS (@JavonTM1) May 20, 2025

Marks suggested that if this pattern breaks out again in 2025, Solana could reach a price target of $450. The analysis points to potential for substantial gains if technical conditions align.

Popular crypto trader XO remains cautious but optimistic. He suggests waiting to see if Solana can flip the $180 level into support before taking long positions.

Memecoin Activity Drives Volume Growth

Solana memecoin trading activity has surged alongside Bitcoin’s recovery. Average daily trading volume for memecoins rose 46% between April and May.

Monthly trading volume for memecoins on Solana reached $58.7 billion as of May 21. This figure already exceeds April’s total volume by over $1 billion.

Memecoins now account for 64.6% of all monthly trading volume on Solana as of May 21. This represents an increase from 56% recorded in April.

The surge in memecoin activity correlates with Bitcoin breaking the $100,000 threshold on May 8. Daily volumes gradually increased to nearly $4.2 billion, the highest since February 15.

Weekly volumes show consistent growth since Bitcoin bottomed on April 7. Memecoin weekly trading activity averaged a 16% increase through the week ending May 18.

Between May 12 and May 18, Solana-based memecoins reached nearly $24 billion in weekly volumes. This marks the highest level since the week ending February 16.

The memecoin sector delivered strong performance over the past month. These tokens ranked as the fifth-best performing crypto sector among 22 categories, rising 59% on average.

Despite increased volume, confidence remains below pre-LIBRA scandal levels. The February incident involving insider trading allegations continues to impact investor sentiment on Solana token launches.