Can This Pattern Breakout Launch Solana Price To $296 Next?

Solana (SOL) price surged 50% from the $100 demand zone, peaking near $152 this week. This rebound was preceded by a falling wedge breakout noted by chartist Lucky and supported by positive technical and on-chain signals.

The rise also led to more than $20 million in liquidated shorts, associated with the popularity of meme coins, and against the backdrop of legal issues in Solana’s decentralized exchange market. Currently, analysts have set upside targets at $180, $205, $263, and $296 for Solana price.

Analyst Identified Key Falling Wedge Breakout

Crypto analyst Lucky identified a falling wedge pattern that had compressed Solana price action since late 2024. This pattern, typically a bullish reversal signal, broke upward around $100 and was followed by strong price momentum. Within days, the altcoin breached $150, signaling trend confirmation.

Lucky’s roadmap, published April 23, showed a short-term target of $180 and outlined higher projections at $205, $263, and $296. The breakout was supported by a double-bottom formation, with Solana closing above neckline resistance at $147. This level now acts as critical support.

The MACD indicator also provided further confirmation of this viewpoint. The MACD line crossed above the zero line on the daily chart. It signaled positive buying momentum for the first time in weeks.

Short Liquidations Drive Solana Price Acceleration

Additionally, data from SolanaFloor revealed over $20 million in short liquidations in 24 hours. As Solana price rallied to $152, these positions were forcefully closed. That added buying pressure and accelerated the rally.

Notably, liquidation events lead to the reduction of the over-leveraged traders who offer resistance to change. The resulting short squeeze allowed SOL price to approach higher resistance zones without major friction.

At press time, Solana price was trading near $151.82, up 8.6% over 24 hours, according to CoinMarketCap. Volume and volatility remained elevated.

It is in contrast to sentiments as bearish players exit the market and, in turn, bullish players gain traction. The move past $150 has unlocked the way forward for further moves up to other technical barriers, including Lucky’s levels.

Meme Coin Rally Adds to Bullish Sentiment

Solana’s recent gains have also been fueled by a rapid increase in meme coin valuations within its ecosystem. According to CoinGecko, Solana meme coins have risen in value by 23% in market capitalization in the last 24 hours, climbing up to $8.7 billion.

BONK and WIF stood out as the most popular tokens with their daily growth rates surpassing 20%.

Despite altcoin’s rally, legal battles have surfaced, including a recent complaint filed on April 21 targeting Solana-based decentralized exchange, Meteora. The plaintiffs alleged that the DEX was engaged in a pump-and-dump scheme of the token, M3M3, defrauding investors of $69 million.

While M3M3 now trades 98% below its high, the legal attention drew investors back to Solana’s broader meme token ecosystem.

Solana Price On-Chain Metrics Confirm Strong Ecosystem Growth

Notably, Solana price has seen a rise in on-chain activity. According to DeFiLlama data, the total value locked in the network has grown by $500 million in 48 hours. It has reached its two-month high. At the same time, decentralized exchange volumes on Solana grew to $2.94 billion.

The on-chain boost was accompanied by the rising activity of meme tokens, together with a more extensive use of DeFi. These trends point to increasing investor confidence in the Solana blockchain as an asset and trading platform.

Meanwhile, resistance levels at press time were $180, marked by the double-bottom breakout target. In addition to that, the technical analysis of Lucky identified $205, $263, and $296 as the next resistance levels.

Those targets are achievable for Solana price as the market structure and financial liquidity strengthen.