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Solana (SOL) is showing signs of weakening bullish strength as it struggles to break past key resistance near $171. After an early rally on August 5 pushed the price above $171, bearish pressure during U.S. trading hours forced a pullback. By press time, SOL was trading at $163.98, marking a 3.29% drop over 24 hours.
Despite the price dip, trading volume rose sharply by 23.37%, reaching $5.39 billion. This signals strong market activity but also reflects a lack of buyer follow-through. Analysts point to technical indicators like the RSI and MACD, which now show bearish divergence, suggesting the current rally may be losing steam.
Resistance Holds at $171 Despite Intraday Surge
On August 5, Solana briefly broke above $171 following a short-term rally that began the evening before. However, the gains were short-lived. Strong selling pressure during the U.S. market hours reversed the momentum, causing SOL to fall back into its earlier range between $160 and $170.
The rejection near $171 reflects a broader pattern observed in Solana’s price action since early 2024. Despite several attempts to push higher, the token has consistently failed to break above the $210–$220 resistance zone. Its last significant breakout was in December 2024, when it briefly surpassed $300. However, that move was quickly reversed, and the price returned to a horizontal range.
Key Technical Zones Still in Play
Looking at the longer-term chart, Solana has been trading within a wide horizontal range since early 2024. Support has repeatedly held around $130, while resistance remains firm near $210. After dipping toward $115 in early 2025, SOL rebounded in March and has been testing higher levels since.
The recent decline has returned the price to a mid-range support zone around $160–$170. A decisive move below this zone could expose the token to the next support at $150. On the upside, SOL must break and hold above $170 to have a chance at retesting $180 or higher.
Volume Up, But Momentum Weakens
One of the more interesting data points is the rise in trading volume. Despite the price falling back to $163, daily trading volume rose over 23%, indicating that investors remain engaged. Solana’s total market capitalization currently stands at $88.47 billion, with 538.41 million tokens in circulation out of a total supply of 606.75 million. The fully diluted valuation (FDV) is estimated at $99.78 billion.
However, the volume spike hasn’t translated into lasting price strength, suggesting that much of the activity could be from short-term traders or profit-taking following the short rally.
RSI and MACD Turn Bearish
Technical indicators paint a cautious picture. The Relative Strength Index (RSI) has dropped to 44.72, below the neutral 50 level. This comes after an RSI peak of around 75 in mid-July, which marked overbought territory and preceded the current downturn.
Meanwhile, the Moving Average Convergence Divergence (MACD) has also turned negative. The MACD line sits at -0.20971, with the signal line at 3.19263—forming a bearish crossover. The MACD histogram is in negative territory at -3.40234, further confirming the downward momentum.
Until the RSI climbs back above 50 and the MACD histogram starts printing green bars, traders are likely to remain cautious.
Outlook: More Downside Unless Key Levels Break
The path forward for Solana will depend largely on whether it can reclaim $170 with strong momentum. A sustained break above that level would be a sign of renewed buyer confidence. However, if SOL continues to struggle below this point, there’s a risk of falling toward the $150 support area.
Short-term traders will be watching for any positive divergence in RSI and MACD, while long-term holders may wait for a firm breakout above $180 to confirm a shift in trend.
Conclusion
Solana’s recent rejection near $171 highlights the token’s ongoing battle with resistance in a sideways trading range. While volume is rising and investor interest remains high, technical indicators suggest weakening momentum in the short term.
With key support around $160 and strong resistance above $170, SOL’s next move could set the tone for the remainder of August. Until then, traders and investors are likely to remain cautious, waiting for a decisive breakout—or breakdown.
