Solana (SOL) demonstrates potential for a significant bullish breakout despite regulatory headwinds, as technical indicators highlight critical price levels that could dictate its near-term trajectory. The cryptocurrency recently tested resistance near the 50-day simple moving average at $154 before finding firm support at the 20-day exponential moving average around $149, effectively stalling further downward movement.
Market analysts identify $159 as the crucial resistance threshold; a decisive break above this level could propel SOL toward $168, with $185 emerging as the next major upside target. Conversely, failure to hold the $144 support zone risks triggering a decline toward $137 and potentially $130.
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Fidelity’s spot Solana ETF application, initiating a 21-day public comment period. This regulatory uncertainty introduces additional variables into SOL’s price equation, though technical patterns remain the immediate focus for traders.
Notably, a bearish descending triangle formation on the 4-hour chart suggests potential vulnerability, with a breakdown below $144 possibly accelerating losses toward $129. However, this pattern would be invalidated by a sustained move above current resistance levels.
Investors are advised to monitor the $159 resistance and $144 support closely, alongside regulatory developments, to gauge Solana’s next directional move amid evolving market conditions.