Solana Stuck Between Resistance and Support as $254 Target Looms

Key Insights:

• Solana is stuck between long-term resistance at $254 and rising support, setting up for a breakout.
• A confirmed cup and handle pattern could drive Solana’s price to $6,000 with a breakout.
• CME Group launches CFTC-regulated Solana options, boosting institutional access and credibility for the token.

Solana (SOL) is currently facing a critical phase of consolidation, trapped between long-term resistance and rising support. The token recently faced rejection at the $254.84 resistance level, which has been capping its price movement since 2021. While Solana’s price failed to break through this key resistance, the upward-sloping support trendline from March 2024 remains intact, keeping hopes of bullish momentum alive.

Solana’s Resistance and Support Levels

Solana has been stuck in a consolidation phase, unable to break free from the $254 resistance. The price has struggled to push past this level for years. Despite recent rejection at this resistance, the rising support trendline offers hope for a potential breakout. 

According to Lark Davis the market is “stuck” between these two zones, with the possibility of a breakout looming. The price of Solana has yet to break the long-term resistance, but the support trendline remains an important factor.

If the support holds, it could propel Solana to higher targets, potentially ranging from $300 to $350. However, if the support fails, a downward movement towards $120 could be in the cards. As of press time, Solana’s price stands at $208.43, with a 24-hour trading volume of over $11.94 billion. The cryptocurrency has gained 6.30% in the last 24 hours.

Cup and Handle Pattern Could Drive SOL to $6,000

Another potential pattern observed on Solana’s charts is a cup and handle formation. According to market analyst Patel, if the pattern confirms a breakout, Solana could see a massive price surge. The cup formation spans from $260 to $8 and back to $245, with the handle developing between $140 and $245. 

Based on Patel a breakout above $245 could trigger a macro bull run, pushing the price toward $480–$500 initially, with potential for much higher gains. Patel emphasized the significance of the cup and handle pattern, describing it as a “powerful long-term setup that often sparks major rallies.”

If the pattern plays out as expected, Solana could see its price surge to levels between $2,000 and $6,000. However, the breakout remains unconfirmed, and the pattern’s success depends on the market’s next move.

CME Group Launches Solana Options

Meanwhile, in a move to boost institutional interest in Solana, the CME Group has launched CFTC-regulated Solana options. The new derivatives offer direct exposure to SOL, allowing traders to engage with the cryptocurrency through physically-settled contracts.