Solana (SOL) Price Reclaims $165 as Selling Pressure Dries Up — Charts Align for Upside

Key Takeaways

• Solana’s daily chart reveals a cup-and-handle setup, indicating a potential trend reversal with $165.96 as a key breakout level.
• On-chain data shows a negative exchange net position change, indicating that SOL holders are trying to reduce sell pressure.
• The 12 EMA has crossed above the 26 EMA, and is supported by a positive MACD; if sustained, SOL’s price might break $187.64.

After shaking out weak hands with a brutal dip last week, Solana (SOL) has flipped the script, soaring past $165 and leaving its $150 lows in the dust.

Bulls are back in the driver’s seat across multiple timeframes, defending gains with conviction.

While bears have not entirely vanished, they are on the back foot. In this CCN breakdown, we chart the key levels that could confirm a full-on Solana price revival.

Solana Breaks Out from Cup and Handle

Between February and May, SOL appeared to be carving out a U-shaped recovery, aiming for a move back toward $200. However, the bullish momentum faltered in the final week of May, with the price slipping into a descending channel.

Interestingly, this pullback and the earlier recovery have formed a cup-and-handle pattern on the daily chart. This bullish reversal pattern can last weeks to months if the price breaks above the resistance.

The key resistance level for Solana’s price is $165.96, which the altcoin is looking to break. However, to move closer to $200, bulls must first defend the immediate support at $145.07.

If validated, the rising Relative Strength Index (RSI) reading could help drive SOL’s price toward $240.17 in the mid-term.

Selling Pressure Fades

On-chain data also seems to support this thesis. According to Glassnode, Solana has been experiencing central outflow from exchanges.

As seen below, the exchange net position change is in the negative territory. This implies that most holders have taken their SOL off exchanges for over 30 days, indicating low selling pressure.

If sustained, then Solana’s price might defy another correction. Instead, the altcoin might break above key resistance levels as mentioned earlier.

SOL Price Analysis: Bullish Reversal

The 4-hour SOL/USD chart, like the signs on the daily timeframe, further reinforces the bullish outlook. The Moving Average Convergence Divergence (MACD) currently holds positive territory, indicating bullish momentum around Solana.

Additionally, the 12-period Exponential Moving Average (EMA) has crossed above the 26 EMA, suggesting that SOL may be ready to recover its recent 13% loss.

Supporting this thesis, the Parabolic SAR dots are positioned below the current price, signaling strong underlying support.

If this structure holds, SOL could break above the immediate resistance at $ 187.64 and potentially climb to $200 in the short term.

However, if the altcoin fails to maintain support at $150, the bullish setup may be invalidated, with a possible retracement to $141.37.

This decline might be worse in a highly bearish scenario, and SOL’s price might slide to $130.45