Solana (SOL) is once again testing a critical barrier at $205 after surging nearly 8% in the past 24 hours to $203.5. The move has triggered a renewed optimism among traders who see the ascending triangle pattern forming on the charts as a potential launchpad for a breakout toward $255.
Related Reading
According to analyst Lark Davis, Solana has been rejected three times at the $205 mark, but higher lows and sustained buying pressure suggest that momentum is building.
“If volume continues to rise into this test, the setup points clearly to $255 as the next target,” Davis explained. Trading activity supports that outlook, with more than $9 billion in daily volume underscoring strong market participation.
Technical Indicators Signal Solana Stability
Market data shows Solana is not yet in overbought territory, with its Relative Strength Index (RSI) sitting at 55.63. This gives the cryptocurrency room to climb further without triggering immediate selling pressure.
The MACD indicator has also confirmed a bullish crossover, aligning with the positive momentum.
On-chain signals strengthen the case for upside. Solana’s trading volume is steadily increasing, while its clean rebounds from the ascending trendline highlight active buying on every dip.
Market analyst Alex Clay further pointed out a completed W-bottom pattern on the SOL/BTC chart, suggesting Solana may outperform Bitcoin in the short term, just as Ethereum recently did.
Outlook: Path Toward $255 Breakout
For traders, the $205 level has become the decisive battleground. A confirmed breakout above it, supported by strong volume and sentiment, could propel Solana to the $255 technical target.
SOL's price trends to the upside on the daily chart. Source: SOLUSD on Tradingview
The broader crypto market backdrop also favors SOL, with Ethereum’s rally drawing attention to high-potential altcoins.
Analysts caution that failure to hold above $205 could delay the move higher, leaving Solana stuck in its current consolidation zone. With institutional interest in Solana growing and network activity reaching record levels, the token remains one of the most closely watched assets in the market.
Related Reading
For now, all eyes remain on $205, the resistance level that could define Solana’s next major leg upward.
Cover image from ChatGPT, SOLUSD chart from Tradingview
Source link
James Halver
https://www.newsbtc.com/news/solana/solana-nears-205-resistance-with-8-daily-surge-analysts-see-a-255-breakout-next/
2025-08-27 23:00:00
