Solana (SOL) Surges Past $170 as Memecoin Mania Drives DEX Activity Higher

Key Takeaways

• Solana (SOL) trades in the middle of its long-term range of $120-$250.
• The SOL price has increased by 77% since preventing a breakdown in April.
• Did Solana’s price begin its bullish trend reversal, or is this a relief rally?

The Solana price has increased by 70% since April, accelerating its rally last week.

Solana’s rally has coincided with an increase in its Decentralized Exchange (DEX) trading volume due to a surge in several memecoins, such as POPCAT, MOODENG, PNUT, and GOAT.

Last week’s volume of $4.3 billion has been the biggest since January and is in line with the surge at the end of 2024.

With that in mind, let’s examine a few charts and determine whether Solana can capitalize on this increased interest and sustain its upward movement to new highs.

Solana’s Long-Term Range

The weekly time frame Solana analysis shows that the price has traded in a long-term range between $120 and $250 since late 2023.

The range was at risk of falling twice: once in January 2025, when a breakout (red icon) occurred, and again in April, when a breakdown (green icon) occurred.

Since the April bounce prevented the breakdown, SOL has increased by over 70% and nearly reached the middle of the range at $180 (blue).

A close above this level will put the range high and a new all-time high into play.

Technical indicators are at pivotal levels. The Relative Strength Index (RSI) reached 50 from below and is attempting a breakout.

Similarly, the Moving Average Convergence/Divergence (MACD) made a bullish cross (black circle) and is moving toward positive territory.

So, a SOL movement above the middle of the range will also turn the indicators bullish, confirming the trend reversal.

Reversal or Relief Rally?

While the long-term price analysis is mixed, the wave count gives a bearish Solana price prediction.

According to the count, SOL completed a five-wave upward movement (green) since December 2022 and is now correcting in an A-B-C structure (red).

If this is the case, the ongoing increase is just the relief rally of wave B, after which another decline is likely.

Notable bearish divergences (orange) between waves three and five (orange) legitimize this count, predicting that new lows are likely.

The short-term Solana count shows a completed five-wave price increase, likely the first portion of the proposed relief rally.

Wave four created a symmetrical triangle, confirming the validity of the count.

If this count is accurate, SOL will correct in wave B toward $140 before completing another upward movement.

SOL Price Could Correct

Solana’s analysis suggests the price started a significant relief rally in April, which could continue higher.

However, a short-term top is likely before the price eventually moves above $180.

SOL trades in the middle of its long-term range, a likely spot for a local top.