Solana (SOL) Price: Technical Indicators Suggest Potential Rally Despite Recent Dip

TLDR

• Solana currently trading around $173, down 4.7% in the past 24 hours
• VanEck included SOL in its Multi-Chain Treasury Fund with $100,000 minimum investment versus $1 million on Ethereum
• Technical analysis shows SOL broke above the Ichimoku Cloud, signaling possible trend reversal
• Elliott Wave analysis points to potential $360 target, though $172 support must hold
• SOL perpetual futures markets maintained positive taker CVD for 83 consecutive days

Solana (SOL) is currently trading at around $173, experiencing a short-term dip of 4.7% over the past 24 hours. However, technical indicators and institutional developments suggest a potentially bullish outlook for the popular cryptocurrency despite this temporary setback.

The price correction comes after SOL reached a high of $184.75 before retreating below the $180 mark. Traders are now watching key support levels, particularly at $172, which must hold to maintain bullish momentum.

VanEck’s recent inclusion of Solana in its Multi-Chain Treasury Fund has significantly enhanced the network’s institutional reputation. With VBILL, a tokenized U.S. Treasury fund running across several blockchains, VanEck has positioned SOL as one of the selected platforms for institutional capital flows alongside Ethereum, Avalanche, and BND Chain.

Notably, the minimum investment for Solana-based exposure through this fund is $100,000, compared to $1 million on Ethereum. This lower entry point could potentially attract more institutional investors to the Solana ecosystem.

“Tokenized funds like VBILL improve market liquidity and efficiency,” stated Kyle DaCruz, Director of Digital Assets Product at VanEck, highlighting the growing institutional interest in blockchain infrastructure.

Technical Signals Point Upward

Technical analysis reveals that Solana has broken above the Ichimoku Cloud on the daily chart following weeks of sideways trading. This pattern typically indicates a trend reversal and has been accompanied by positive momentum indicators.

The Moving Average Convergence Divergence (MACD) has recently achieved a bullish crossover, with both the MACD line and signal line currently above the zero level. This double confirmation reinforces the case for positive momentum going forward.

On the hourly chart, a short-term declining channel or bullish flag pattern is forming with support at $172. This formation often precedes continued upward movement once the pattern completes.

Solana has already cleared immediate resistance around $164 and appears to be preparing for a move toward the next major resistance level at $211. However, analysts point out that consistent trading volume is needed to transform this breakout into a lasting trend.

Solana Price on CoinGecko

Key resistance levels to watch include $180, $185, and $191.25, with a major barrier at $211 that could open the path to $240 if breached.

Derivatives Data Shows Strong Positioning

Perhaps the most striking indicator of market sentiment comes from Solana’s derivatives data. SOL’s perpetual futures markets have maintained positive taker Cumulative Volume Delta (CVD) for 83 consecutive days—the longest such streak since the 2021 bull market.

This extended period of derivatives optimism stands in contrast to SOL’s spot price, which remains about 30% below its most recent peak. The disconnect between futures market sentiment and spot price action raises questions about upcoming market dynamics.

While futures traders remain positioned for upside, the lag in spot prices could either signal an approaching surge as spot buyers enter the market or suggest a possible correction if the gap fails to narrow.

Elliott Wave analysis reveals that Solana’s recent movement forms a “five-wave pattern” that could potentially indicate the beginning of a larger impulse wave. Under this scenario, independent analyst More Crypto Online (MCO) suggests the current structure reflects wave 1 of a bigger pattern that might ultimately approach $360 or higher.

However, MCO cautions that a daily close below $172 would indicate that a price top has formed and could trigger retracement toward the upper-$160s or possibly the mid-$150s before the next leg up begins.

For SOL to validate the bullish outlook, it must maintain support at $172 and subsequently break above $180. If these conditions are met, Solana appears positioned for a potential rally toward the psychologically important $200 level in the near term.

The cryptocurrency’s short-term price action shows some weakness, but the combination of institutional adoption via VanEck’s VBILL fund, technical breakout above the Ichimoku Cloud, and favorable derivatives sentiment builds a strong case for possible bullish continuation.

Solana formed a base above the $155 support before starting its recent increase. The price dipped below the 50% Fibonacci retracement level of the upward move from the $166 swing low to the $185 high, but bulls remain active above the $172 level.

If SOL fails to rise above the $180 resistance, it could start another decline with initial support near the $172 zone and major support at $170. A break below $170 might send the price toward $162, with further decline possible to $150 if the $162 support fails to hold.

The cryptocurrency’s hourly MACD is losing pace in the bullish zone, while the RSI sits below the 50 level, indicating some short-term weakness.