The cryptocurrency market continues to capture the attention of investors, and Solana (SOL), one of the top-performing layer-1 blockchain tokens, is now under the spotlight. As of May 23, 2025, market analysts and traders alike are watching Solana’s price action closely. The reason? A critical price movement is potentially forming, and the next three-day or weekly candle close could be the confirmation that SOL bulls have been waiting for.

Social media was abuzz after a tweet from a respected crypto trader known as Pentoshi, who suggested that Solana could be gearing up for a significant upward move—if, and only if, it can close above a key resistance level on the 3-day or weekly timeframe. For everyday investors and crypto enthusiasts, this might sound technical, but here’s what it really means: if SOL can maintain strength and close above a specific price barrier in the next few days, the token might be on the brink of a major rally.

Let’s break down what’s happening with Solana, why it matters, and what traders and investors need to know.

Current Price Snapshot and Market Sentiment

At the time of writing, Solana is trading around $175.23 on major exchanges such as Binance. The token is up 2.4% over the past 24 hours, according to data from CoinGecko. This gain comes amid a broader wave of optimism in global markets. On the same day, the NASDAQ tech index rose by 1.1%, indicating a positive risk sentiment that often spills over into the crypto sector.

SOL’s price action is benefiting from this environment. With more investors willing to take on risk, interest in altcoins like Solana is increasing. Volume data supports this trend—SOL’s trading volume surged to over $2.8 billion within a 24-hour period, indicating a significant rise in market participation.

Why the 3-Day and Weekly Candle Close Matters

In technical analysis, a candle close refers to the completion of a specific time period in a candlestick chart, often used by traders to interpret price movements. In this case, the 3-day and 1-week candles are being closely watched.

According to Pentoshi’s analysis, if Solana can close above a key resistance level on either of these timeframes, it would be a strong bullish signal. It suggests that buyers are in control and that the token has enough strength to break through previously unbreachable price ceilings.

Such a close would likely  further buying, especially from traders looking to ride the next wave of upward momentum.

Looking at the Charts: Resistance and Support Zones

Let’s take a closer look at the chart setup for Solana.

• Current resistance: $178–$180

• Next target if breakout confirmed: $190

• Support zone: $165–$168

According to historical data from TradingView, the $178–$180 area has acted as a strong resistance multiple times in the past. A close above this zone would flip it into support and potentially open the door to a rally toward $190—possibly higher.

Volume and momentum indicators are also pointing in the bulls’ favor. The RSI (Relative Strength Index) on the daily chart is currently reading 62—approaching overbought territory but still showing room to move higher before triggering concerns of exhaustion.

Meanwhile, the MACD (Moving Average Convergence Divergence) has printed a bullish crossover on the 3-day chart, a classic sign of trend continuation.

Solana Network Metrics: Usage on the Rise

Technical indicators are one thing—but what’s happening on the Solana network itself? According to on-chain analytics from Dune Analytics, Solana processed over 5.2 million transactions in the past week, marking a 12% increase week-over-week.

This is a healthy sign that network usage is increasing. More transactions typically mean more demand for the token, as users need SOL to pay for fees. Growing usage can lead to upward price pressure, especially when coupled with rising speculative interest.

Institutional Momentum Builds Behind SOL

Beyond charts and on-chain data, one of the most important developments for Solana and other top-tier tokens is the increasing interest from institutional investors.

BlackRock, one of the largest asset managers in the world, recently filed quarterly reports indicating increased exposure to blockchain and crypto-related investments. While not explicitly naming SOL, many funds are now broadening their exposure beyond Bitcoin and Ethereum.

Institutional capital brings stability, higher liquidity, and increased visibility—three ingredients that could be vital to pushing Solana higher, especially in the current macro environment where tech stocks and risk assets are on the rebound.

Cross-Market Correlation: Stocks and Crypto Align

An interesting trend that’s emerging is the strong correlation between tech stocks and high-performance cryptocurrencies like Solana. On May 23, the NASDAQ rose 1.1% in early trading, while Solana also climbed nearly 2.4%. At the same time, Coinbase (COIN), a major crypto stock, rose 3.2%.

This alignment suggests that risk sentiment is improving across the board—and that investors are increasingly viewing crypto assets as part of a broader growth strategy, not just speculative tools.

What Should Traders Watch Next?

There are three main areas traders should monitor over the coming days:

1. Candle Close Confirmation If Solana closes above $180 on either the 3-day or weekly timeframe, it would be a bullish confirmation of trend continuation. This could lead to rapid price gains toward $190 and beyond.

2. Volume Trends Rising volume is essential for a sustained breakout. Keep an eye on SOL’s 24-hour trading volume across major exchanges.

3. Stock Market Trends The correlation with the NASDAQ and major tech stocks means that a continued rally in equities could support further gains in crypto.

Long-Term Outlook: More Than Just a Trade

For longer-term investors, the current setup on Solana is more than just a potential trade—it’s a signal that the token could be entering a new phase of adoption and price discovery.

With increasing transaction volume, favorable technical setups, rising institutional interest, and strong correlations with broader markets, Solana is well-positioned to benefit from the next bullish cycle in crypto.

However, it’s essential to manage risk. Crypto markets remain volatile, and while the upside potential for SOL is significant, traders should use stop-losses and remain cautious of macroeconomic shifts that could impact sentiment.

Conclusion

Solana (SOL) is at a crucial technical juncture, and the next few days could define its short- to mid-term trajectory. With strong on-chain activity, growing institutional confidence, and favorable technical signals, the stage is set for a potential breakout.

If SOL can close above key resistance levels on its 3-day or weekly chart, traders could see a swift move toward the $190–$200 range. For investors, this is a critical time to stay informed, monitor volume and sentiment, and consider how Solana fits into their broader crypto strategy.