Solana (SOL), one of the top-performing altcoins in 2025, is attracting renewed attention as technical indicators and market structure suggest a potential breakout may be in the works. After a pullback from May highs, the asset has entered a crucial consolidation phase above a strong support range between $147 and $150. With technical patterns beginning to align in favor of bulls, traders are watching closely for a possible move toward the $159–$165 zone.

SOL Finds Strong Support Around $147

Following a correction from its local high of $176, Solana found stability near $147. This level has acted as a key demand zone where buyers have repeatedly stepped in to defend against further downside. On multiple occasions in the past month, the $147–$150 range has shown resilience, indicating the presence of strong buying pressure.

The formation of a double-bottom pattern at these levels is a clear sign of accumulation. Each dip toward this support has been met with a quick bounce, suggesting that traders consider this zone as a launchpad for the next potential move higher.

Cup-and-Handle Pattern Forms on the Charts

The most striking technical development for Solana is the emergence of a classic cup-and-handle pattern on the daily timeframe. This formation is considered a bullish continuation signal and often precedes strong upward price action. The “cup” part of the pattern reflects a rounded bottom, suggesting a gradual shift from selling pressure to accumulation, while the “handle” indicates a brief consolidation before a breakout.

In Solana’s case, the neckline of this pattern lies in the $177–$181 range. If the price manages to maintain upward momentum and break above this resistance with increasing volume, it could set the stage for a rally targeting levels above $190.

Before that happens, however, traders expect intermediate resistance around $159, which could trigger short-term selling or profit-taking. Still, if the buying volume holds up, any retracement from that level could be short-lived.

Momentum Indicators Signal a Bullish Setup

Beyond price patterns, momentum indicators are showing signs of a bullish resurgence. The Relative Strength Index (RSI) has recently bounced from the oversold territory and is now trending upwards, indicating that buyers are gradually regaining control.

The Moving Average Convergence Divergence (MACD) also supports this view. The MACD line is approaching a bullish crossover with the signal line, suggesting that momentum could continue to build in the coming days. A drop in selling volume further adds weight to this perspective, implying that the worst of the recent correction may be over.

On-Chain Metrics Remain Supportive

Solana’s on-chain activity adds another layer of support to the bullish narrative. Despite broader market uncertainty, SOL continues to see healthy network usage, with consistent wallet activity and transaction volumes holding firm. This sustained activity signals ongoing user engagement, which is crucial for long-term price support.

Data from blockchain analytics platforms shows an increase in new addresses and daily active users. These metrics typically precede price movement and indicate continued interest in the Solana ecosystem, especially among developers and DeFi participants.

What Comes Next for SOL?

From a technical and sentiment perspective, Solana seems well-positioned for a move higher—provided it can sustain current levels and build momentum. The price must first overcome minor resistance around $159 before making a push toward the neckline of the cup-and-handle formation.

If bulls manage to flip the $159–$165 range into support, the next phase could involve testing the $177–$181 region. A successful breakout above this level could trigger a stronger rally that extends well beyond $190.

That said, caution remains warranted. If Solana loses the $147 support zone, it may trigger another leg downward toward lower consolidation levels, possibly around $135. But as long as buyers defend current support, the path of least resistance appears to be upward.

Final Thoughts

Solana’s current market structure suggests that it is entering a decisive phase. With a bullish technical setup forming, improving momentum indicators, and strong on-chain metrics, the odds favor buyers in the short term. The cup-and-handle pattern developing on the charts is particularly noteworthy, as it could signal the beginning of a broader uptrend if confirmed.

As June unfolds, traders and analysts alike will be watching closely to see if Solana can capitalize on this setup and reclaim its May highs—or even go further.