According to analysis by Trader Tardigrade, Solana (SOL) has firmly established itself above a key descending trendline support level. After a period of consecutive lower lows (LL) and lower highs (LH), SOL recently formed its first higher high (HH) on the daily chart, signaling a potential bullish reversal. This structural shift has captured traders' attention—if sustained, it could positively impact market sentiment and trading volume, potentially driving broader cryptocurrency market liquidity and altcoin performance.
Technical Breakthrough Confirmed
Solana (SOL) has successfully held the descending trendline as support on its daily chart, showing signs of a technical breakout. Previously trapped in a bearish pattern of multiple LLs and LHs, SOL formed a new HH around June 10, 2025 (~165.23 USD), suggesting trend reversal potential. Key observations include:
- Price Action: 3.8% 24-hour gain on Binance's SOL/USDT pair
- Volume Surge: Trading volume increased 27% to $2.1B (June 10 UTC)
- Relative Strength: SOL/BTC pair rose 2.1%, outperforming Bitcoin
👉 Discover why traders are bullish on SOL's 2025 trajectory
Market Context and Correlations
The breakout coincides with broader financial market movements:
- Bitcoin hovered near the $69,000 resistance level
- Nasdaq opened +0.5% on June 10, reflecting tech sector optimism
- 30-day correlation between Nasdaq and SOL: 0.78 (high institutional influence)
Technical Indicators Turning Bullish
Key metrics as of June 10, 2025:
| Indicator | Value | Interpretation |
|---|---|---|
| Daily RSI | 58 | Neutral → Bullish momentum |
| MACD | Positive divergence | Strengthening uptrend |
| Wallet Activity | +15% (48h) | Growing network participation |
Trading Strategy Outlook
Key Levels to Watch:
- Resistance: $175.00 (next psychological barrier)
- Support: $158.00 (stop-loss threshold)
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FAQ: Solana's 2025 Price Potential
Q: Why is SOL's trendline break significant?
A: It confirms buyers can sustain prices above former resistance—a classic bullish confirmation signal.
Q: How does Nasdaq performance affect SOL?
A: The 0.78 correlation suggests institutional money flows often impact both simultaneously.
Q: What's SOL's advantage over other altcoins?
A: Its demonstrated ability to hold key supports while showing volume-backed breakouts sets it apart.
Q: Are chain metrics supporting this rally?
A: Yes—15% wallet activity growth indicates genuine user adoption beyond speculative trading.
Q: What could invalidate the bullish scenario?
A: A daily close below $148.00 would violate the higher timeframe structure.
Q: How might Bitcoin's movement impact SOL?
A: While SOL shows relative strength, a BTC drop below $65K could create altcoin sell pressure.