Summary (Bullet Points)
- Solana’s price jumped +16.5% in a week, outperforming both Bitcoin and Ethereum.
- The US spot SOL ETF proposal is the key catalyst behind this spike.
- SOL price broke significant resistance levels: 50-week and 200-week EMAs.
- RSI and ADX suggest moderate momentum with room for growth.
- High-volume accumulation zones between $100 and $120 provide strong support.
- Next resistance: $160 to $180—watch closely for a breakout.
- Solana is gaining institutional attention amid a soft crypto market.
Solana Outpaces Bitcoin and Ethereum in a Soft Market
While Bitcoin and Ethereum remain sluggish in the current soft market, Solana (SOL) has made an impressive comeback. With a remarkable 16.5% price surge over the past week, SOL is no longer lurking in the shadows. It’s now leading the crypto charge—and here’s why.
Why Is Solana Pumping? The Spot ETF Buzz
At the heart of Solana’s rally is a regulatory breakthrough: the development of a US spot SOL ETF. This regulatory progress is attracting significant attention, both from retail and institutional investors.
This news has pushed SOL’s price to $158.12, crowning it the top performer among the top 10 cryptocurrencies by market cap this week.
📣 “Solana has not already built any well-established long-term trend formation,” the report notes, highlighting that while the momentum is real, caution remains.
Technical Indicators Are Flashing Green
Solana’s technical landscape reinforces the bullish narrative. Here’s a quick breakdown:
- ✅ 50-week EMA (~$150) and 200-week EMA (~$100) have been breached – bullish signs.
- ✅ RSI (Relative Strength Index) is at 59 – bullish momentum without being overbought.
- ⚠️ ADX (Average Directional Index) is at 13 – current trend strength is weak, meaning long-term direction is still forming.
- ✅ Squeeze Momentum Indicator is ON – volatility is compressing, often preceding larger moves.
These indicators suggest a technical breakout is in progress, supported by positive sentiment rather than full confirmation of a strong long-term trend—yet.
On-Chain Data: Solid Groundwork Below
Solana’s fundamentals are also looking robust:
- The $100–$120 zone has emerged as a high-volume accumulation area, signaling strong support.
- The $160–$180 range is now the next resistance level to watch.
- A move past $180, combined with an ADX above 20, could signal the beginning of a long-term bullish cycle.
Macroeconomic Backdrop Favors Risk Assets
Solana’s recent gains are not just about crypto. Broader macro trends are supportive:
- The Federal Reserve’s dovish stance (rate hold) is boosting investor confidence.
- A decline in oil prices is creating more favorable conditions for risk-on assets like cryptocurrencies.
In this climate, Solana is capitalizing on its momentum, standing out while other major cryptos search for direction.
What Comes Next?
Solana’s rally is built on:
- Regulatory optimism (US spot ETF progress),
- Strong technical moves,
- High volume support levels,
- And a favorable macro environment.
However, until trend indicators like ADX strengthen and resistance zones are cleared, it’s wise to interpret this rally as a strong technical bounce within a broader consolidation phase—not yet a full-blown bull run.
Should You Buy Solana Now?
For investors considering entry, the $100–$120 support zone offers a solid risk-reward ratio. However, patience is key—confirmation of a sustained breakout above $180 and a rising ADX would suggest a more stable bullish trend.
For first-timers, platforms like Coinbase offer a beginner-friendly way to get started with Solana and other major cryptos.
Final Thoughts
Solana is having a moment of resurgence. Whether it’s a temporary breakout or the beginning of a new era depends on how the ETF narrative, technical indicators, and market sentiment evolve.
In a market where Bitcoin and Ethereum are stagnant, Solana is taking center stage—and the world is watching.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.