Solana’s Recent Market Movement: A Closer Look
Solana (SOL) has been making waves in the cryptocurrency market, surging back above $140 and igniting hopes for a bullish breakout. After a significant recovery from its recent lows of $135, SOL is now testing the crucial resistance zone at $145. This resistance has posed challenges in the past, but this time, the signs are more optimistic.
A Bullish Price Structure Emerges
Historically, the $145 level has triggered multiple pullbacks, each averaging 15%–16%. However, the current scenario paints a different picture, with SOL showing a minor 3%–4% pullback followed by a rebound. This indicates growing bullish resilience among traders and investors. Price action on the 4-hour chart reveals a potential double-bottom pattern, a bullish signal that aligns with SOL’s position above its key moving averages (20, 50, 100, and 200).
Momentum indicators like the Relative Strength Index (RSI) also reflect optimism, consistently staying in the upper range since early 2026. A breakout above the $145 range could activate more buying interest and push the price toward $150 or higher, providing volume expansion accompanies the movement.
The Role of Network Growth and User Participation
Despite the encouraging technical setup, one critical piece of the puzzle remains concerning: Solana’s network growth. Data from Santiment shows a significant decline in new wallet creation, dropping from 30.2 million in November 2024 to just 7.3 million recently. This slowdown in user adoption contrasts sharply with SOL’s previous rallies, which were characterized by robust network participation.
The divergence between price action and network fundamentals raises the possibility of a pullback unless we witness a resurgence in user growth. A recovery in wallet creation could support a sustainable move above $145, potentially setting the stage for a climb toward the $165–$180 range, with $200 as a longer-term target.
The Path Forward: Upside Targets for Solana
As Solana trades within the $141.5–$145.4 resistance band, market participants are closely monitoring whether a structural shift will occur. A convincing, high-volume breakout past $145 could pave the way for SOL to target $150 and beyond. However, without sustained on-chain participation and a revival in network activity, any rally runs the risk of being corrective rather than transformative.
Investors looking to capitalize on Solana’s movements should consider tracking both technical and on-chain metrics. For a deeper dive into cryptocurrency analytics and trading tools, platforms like Santiment provide robust insights to help navigate market complexities.
Final Thoughts
Solana’s recent price surge offers a promising outlook, but it also comes with cautionary notes. While technical indicators point toward further gains, the network’s declining user adoption could hinder sustained bullish momentum. A balanced approach combining technical and fundamental analysis is essential for making informed investment decisions in this volatile market.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.
