Solana (SOL) is starting off 2025 with an impressive surge, and many analysts believe a new bullish phase is upon us. Recent insights from Tradingshot indicate that Solana’s price movements hint at a promising upward trajectory.
The cryptocurrency has recently hit a 10-day high, moving closer to its 50-day moving average (1D MA50), which is an important resistance level. Observers view this surge as the beginning of a fresh bullish phase, occurring within Solana’s five-month Channel Up pattern, supported by multiple key indicators and historical performance.
A closer examination reveals that Solana’s rebound from Support Zone 2 at $179, marking an important threshold following the October 29 peak, could be a pivotal signal for its upcoming moves. This rebound is reminiscent of a similar pattern in September 2024 when bouncing back from Support Zone 1 at approximately $121 led to a previous significant bullish leg in the Channel Up.
This consistency in price behavior boosts analysts’ confidence in Solana’s potential for sustained growth. Adding to the optimism, the cryptocurrency’s December low nearly touched the 200-day moving average (1D MA200), a critical long-term support line that now aligns with the lower boundary of the Channel Up. Historically, this trend line has provided a solid base for price recoveries.
Moreover, the December 22 low sent the one-day RSI into the oversold territory at around 30, a level that has historically triggered strong buy signals since April 2024. Each time the RSI has hit this oversold mark, Solana has rebounded to at least the 0.786 Fibonacci retracement level, now positioned at $242.
Looking ahead, analysts have set a short-term target of $242, aligning with the 0.786 Fibonacci retracement level. If Solana manages to break through the $265 resistance, it could signal the next significant bullish breakout, potentially soaring towards $380. This target reflects a 119% increase from December’s low and mirrors the gains seen during the first bullish leg of the ongoing pattern.
Several factors are contributing to Solana’s optimistic outlook. The network has reportedly seen nearly $424.87 million in stablecoins flowing in over the past week, the highest figure across all blockchains. This robust inflow signals a growing demand and improved liquidity within Solana’s decentralized finance (DeFi) ecosystem.
In addition, data from DefiLlama reveals that Solana’s Total Value Locked (TVL) has surged to $9.13 billion, showcasing significant growth in DeFi, NFTs, and gaming. The anticipated approval of spot Solana ETFs is another potential driver, with firms like VanEck, 21Shares, and Bitwise filing applications.
Market sentiment remains upbeat, with Polymarket bettors assigning a 77% chance that the SEC will approve a Solana spot ETF in 2025. AI models predict Solana could reach a market cap of $200 billion in Q1 2025, reinforcing its bullish forecast.
As of now, Solana is trading at $209.17, reflecting a daily increase of approximately 1.25% and a 10% gain over the past week. These trends indicate strong confidence among investors as they look forward to what 2025 holds for SOL.
With the increasing Total Value Locked, rising interest from institutions, and the possibility of Solana ETFs gaining regulatory approval, the future looks bright for this cryptocurrency. Analysts and investors are attentively watching how Solana maneuvers through crucial resistance levels, which could mark the onset of its next major upward movement.
