Following Donald Trump’s signing of the executive order on the U.S. cryptocurrency strategic reserve, the crypto market experienced a rapid pullback. This led toSolanaquickly dropping, hitting a 24-hour low of $135.
However, a bullish rebound pushed the SOL price back up to $143, reflecting a rejection of lower prices. With the bullish recovery, the SOL price trend suggests a potential reversal, challenging the upper resistance trend line.
Will this reversal lead to a breakout rally and reach the psychological level of $200? Let’s find out.
Solana Price Analysis Indicates a Breakout Surge to $200
On the 4-hour price chart, the SOL price shows a long-term resistance trend line in the medium term, forming lower highs. However, a short-term rebound from the psychological level of $125 has also formed a support trend line.
With the convergence of the two trend lines, the SOL price trend suggests a symmetrical triangle pattern. Currently, Solana’s trading price is close to the lower support trend line of the SOL pivot level, near $140.
As the price has dipped multiple times, the SOL price is expected to rebound, challenging the upper resistance trend line. However, the consolidation near the support level has led to a negative crossover in the MACD and signal line.
While price fluctuations near the S1 pivot level have significantly increased, broader market stability suggests that the SOL price will break through the psychological level of $150.
How GrokCoin and SIMD-0228 Could Trigger a Solana Bull Market
With SOL being announced as part of the U.S. cryptocurrency reserve, the market capitalization of the Solana meme coin GROK surged to $27 million. GROK’s trading volume reached $116 million, representing a new emerging meme coin closely related to identity and artificial intelligence.
This suggests that Solana memecoins may make a comeback, driving its network activity back to the levels of $2024. Additionally,recent discussions regarding Solana Improvement Proposal 0228 may be voted on this weekend.
If approved, the new development proposal will mark a significant change in tokenomics. With the introduction of the new Solana Improvement Proposal 0228, the issuance of SOL tokens will undergo a major shift based on network staking.
If the staking rate falls below 33%, the inflation rate will be adjusted to encourage more staking. However, if there is a large amount of staking on the network, the inflation rate may drop to below 1% per year.
SOL Price Targets
Based on pivot levels and the triangle pattern, a bullish breakout may challenge the R1 resistance level of $197. However, the key fundamental catalyst remains the SIMD0228 vote this weekend. If the proposal is approved, the likelihood of a bullish surge may lead to a triangle breakout rally. On the other hand, Solana’s key support level remains at the $125 mark, followed by the psychological level of $100.
