Key Takeaways:
A key technical indicator on Solana’s (SOL) weekly chart has flashed a buy signal that has historically preceded major price rallies, positioning the asset for a potential breakout. The signal appeared as Solana was trading near $86, following a retreat from a weekly high of $89.
"The Moving Average Convergence Divergence (MACD) line has crossed above its signal line on the weekly timeframe," Cointelegraph noted. "The last time the indicator sent the ‘buy’ signal was in May 2025, preceding a 100% rally above $250."
This same signal was a precursor to even larger gains in previous cycles, with an 860% surge in 2023 and a 617% advance in 2021. Further bolstering the bullish outlook, Solana’s weekly Relative Strength Index (RSI) has recovered to 35 from a low of 25 in mid-February. Analyst Tyler Hill pointed out that the last time the RSI fell to such levels, it "marked the bottom of the bear market for Solana" before a 3,000% rally.
The immediate challenge for Solana is a formidable resistance zone between $90 and $96. According to Glassnode data, roughly 9.9 million SOL are held by investors who bought in this range, creating a potential wall of selling pressure. A decisive close above this area could validate the bullish setup and open the path toward the symmetrical triangle's projected target of $130.
On the daily chart, Solana's price action has formed a symmetrical triangle pattern, indicating a period of consolidation. The breakout threshold for this pattern is a daily close above $90. If confirmed, the measured move of the triangle suggests a potential 50% rally to approximately $130. The daily RSI has improved to 52 from an oversold reading of 11 on February 6, signaling strengthening momentum that could support a breakout attempt.
While the technical signals are promising, the path to $130 is not without obstacles. The $90-$96 corridor is a significant hurdle, not only due to the high concentration of holders but also because the 100-day moving averages converge in this zone, adding another layer of technical resistance.
Technical analyst Ali Charts highlighted a Bollinger Band squeeze on the 3-day chart, identifying the $77 to $94 range as a "no-trade zone." He advises traders to wait for a decisive 3-day candle close outside of this range before taking a position, as the compressed volatility could lead to a powerful move in either direction. As of April 25, Solana continues to find support in the $85-$86 range as bulls gather strength for another attempt at the $90 level.
This article is for informational purposes only and does not constitute investment advice.
