Solana (SOL) is attempting to reclaim a strong resistance zone for the fourth time, which has led some investors to suggest that the rally won’t last long. Nonetheless, on-chain data suggests that SOL’s next leg up could be starting.
On Thursday, Solana hit a six-month high of $216 after breaking out of one of its most crucial resistance zones. The cryptocurrency bounced 16% from Monday’s lows and reclaimed the $200 barrier as support on Wednesday, closing the day above this area.
The trader explained that Solana is trading in a multi-month rising wedge pattern, currently nearing the resistance level that has held over the months. Notably, the cryptocurrency has been rejected from the pattern’s upper boundary multiple times since July, retesting the ascending support line on each occasion.
Supporting SOL’s case, Daan argued that it has “been strong on the back of treasury vehicles being spun up and potential upcoming buying + frontrunning,” noting that “rising wedges are generally leaning bearish but in bull markets it’s nothing new for these to break towards the upside instead.” Based on this and the cryptocurrency’s recent performance, he forecasted that it would reach higher levels later this year.
As the altcoin pushed past the $210 mark, the analyst raised the question of whether the ongoing breakout attempt will be successful or if SOL’s rally would be short-lived for the fourth time.
Martinez shared multiple technical indicators that suggest Solana could finally break out of this pattern and aim for the long-awaited $300 barrier. The analyst explained that the backdrop of social sentiment and on-chain positioning differentiate the current price move from the previous attempts.
Additionally, around $1 billion in realized profits have been booked after the surge to $212, signaling that some traders likely remain unconvinced that momentum will hold during this attempt.
He also highlighted that there are significant accumulation zones below $207, with multiple support zones between $165 and $206, providing a strong base to continue rallying, which contrasts with the lack of resistance above the $212 area.
“With skepticism still present, strong accumulation below $207, and little resistance overhead, this attempt has a higher probability of succeeding compared to prior failures. A confirmed breakout above $212–$215 on sustained volume would shift focus to the $300 target zone,” he concluded.
As of this writing, Solana is trading at $212, a 17% increase in the weekly timeframe.
