Solana (SOL) Price Outlook: ETF Buzz Helps Sustain $125 Support Zone

Key Takeaways

• Solana (SOL) has bounced at the $125 support area.
• The price still trades 54% below its all-time high.
• How long will Solana’s price increase continue?
• Interested in buying or selling SOLANA (SOL)? Read our review of the best exchanges to buy and sell SOLANA (SOL).

The Solana (SOL) price halted its decline on March 11, rebounding by over 25% as speculation regarding a Solana Exchange-Traded Funds (ETF) launch is gaining traction.

Positive Solana news was reported last week regarding both ETF and futures.

The CME Group launched Solana futures on March 17, while Franklin Templeton filed to launch a spot Solana ETF. Polymarket users predict an 87% chance of an ETF approval this year.

The SOL price action reflects this optimism, as Solana has reclaimed important resistance levels. Based on positive news, SOL is now attempting to regain even more losses from 2025.

Solana Bounces at Support

Solana’s weekly time frame analysis shows that the price has fallen significantly since its all-time high of $295.83 in January.

In the next nine weeks, the SOL price created seven bearish weekly candlesticks, leading to a low of $112 in March.

However, Solana has bounced since (green icon), preventing a breakdown from the $125 horizontal support area.

This is a critical support area since it has existed for over a year and acted as a spring that took the SOL price to its all-time high.

Despite the bounce, technical indicators are still bearish, evident by bearish divergences (orange) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).

The indicators also trend downward and have fallen below 50 and 0, respectively, confirming the bearish trend.

However, even though the weekly time frame predicts a bearish Solana, short-term bounces are possible as long as SOL trades above the $125 support area.

SOL Price Breaks Out

The daily time frame shows that SOL has fallen under a descending resistance trend line since its all-time high.

According to the wave count, Solana completed a five-wave downward movement on March 11 and then started to increase.

As CCN analyst Victor Olanrewaju predicted last week, the SOL price broke out from the descending resistance trend line.

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The breakout becomes even more important when combined with SOL reclaiming the $140 horizontal resistance area.

Furthermore, the RSI and MACD have generated bullish divergences (orange). The RSI crossed above 50 today, while the MACD is moving toward positive territory.

As a result, despite a bearish long-term trend, the daily time frame SOL chart suggests the price will bounce in the short term. The closest resistance levels are at $183 and $205.

The $183 level is horizontal and Fibonacci, so it will likely provide strong resistance once SOL reaches it.

Solana’s Rally Will Continue

Solana’s price bounced on March 11, preventing a breakdown from a long-term horizontal support area at $125.

While this did not invalidate the bearish long-term trend, it bodes well for the short-term Solana outlook. 

The daily time frame readings suggest that the most likely future outlook is upward toward at least $183.