Solana (SOL) Price: Pulls Back to $165 After Rally, Faces Technical Resistance

TLDR

• Solana trading at $165.80, down 2.33% over 24 hours after testing $185 resistance
• Galaxy Digital partnering with Sol Strategies to launch tokenized equities on Solana
• Technical analysis shows falling wedge pattern forming with resistance at $180-$190 range
• Anza introduced Alpenglow, a major consensus protocol change from Tower BFT to Votor and Rotor
• Total value locked in Solana protocols has increased from $7 billion in April to above $10 billion

Solana has entered a critical phase as it navigates between strong institutional developments and technical resistance levels. The cryptocurrency, currently trading around $165, has pulled back after testing the $180-$190 resistance zone that has previously acted as a price ceiling.

Recent price action shows SOL down 2.33% over a 24-hour period, settling at $165.80 after reaching highs near $185. This represents a natural market correction after testing a historically strong resistance area.

Despite the pullback, the weekly chart maintains a higher low structure, preserving the broader bullish trend. Analysts point to this pattern as evidence that the current rejection may simply be a pause before another push higher.

Technical indicators reveal a falling wedge pattern forming on the 4-hour chart, which typically signals a potential bullish breakout. This pattern shows price getting squeezed tighter, with the possibility of an upward move if Bitcoin and Ethereum show strength.

Solana Price on CoinGecko

Institutional Momentum

Major institutional players are making significant moves in the Solana ecosystem. Galaxy Digital has partnered with Sol Strategies to launch the first NASDAQ-regulated tokenized equities on the Solana blockchain.

This development strengthens Solana’s appeal beyond DeFi and NFT applications, positioning it as a platform for institutional-grade financial products. Such high-profile collaborations may serve as catalysts for future price movements.

Market observers note that this partnership could bring new capital flows to the ecosystem and enhance Solana’s long-term value proposition. The market’s reaction to this news may determine whether SOL can overcome its current resistance levels.

Large transfers from Binance wallets have raised some questions in the market. Millions of dollars worth of SOL have moved from Binance to external destinations including Wintermute and exchange deposit wallets.

The timing of these transfers coincided with SOL testing a breakout zone, though it remains unclear whether these movements represent sales or internal redistributions. This uncertainty has added another layer to the current market dynamics.

Protocol Upgrades

On May 19, Solana-focused research and development firm Anza unveiled Alpenglow, described as the largest consensus protocol change for the network. This upgrade transitions Solana from the Tower BFT and Proof of History consensus to Votor and Rotor.

The new Votor system finalizes blocks in a single round of voting if 80% of stake participates, and in two rounds if 60% of stake responds. Meanwhile, Rotor works by flattening the turbine tree to reduce network latency through higher fanout and fewer layers.

These technical improvements aim to enhance the network’s performance and scalability. The upgrade comes as total value locked in protocols on Solana has increased from April lows of $7 billion to over $10 billion currently.

The broader cryptocurrency market context also plays a role in Solana’s outlook. Bitcoin’s position above $100,000 and predictions of potential runs to $150,000-$200,000 in 2025 create a supportive environment for altcoins like SOL.

Market sentiment around Solana has been further boosted by anticipation of spot exchange-traded funds, despite the U.S. Securities and Exchange Commission delaying decisions on multiple Solana spot ETF applications.

The U.S. Senate’s recent advancement of the ‘Genius Act’ legislation, which aims to regulate stablecoins, represents another potential tailwind. Experts believe this bill now has a high chance of becoming law, potentially benefiting the broader crypto ecosystem.

For Solana to overcome the $190 resistance level, analysts suggest that increased volume and strong market participation will be necessary. A successful breakout above this zone could potentially lead to a retest of previous all-time highs in the coming months.

The current standoff between bulls and bears leaves Solana at a crossroads. The cryptocurrency’s next major move will likely depend on whether institutional developments and technical factors align to push prices higher, or if resistance levels continue to cap upward momentum.

As market participants watch for signals, the combination of institutional backing, protocol improvements, and technical patterns will shape Solana’s near-term price trajectory.