Key Takeaways
- Solana’s price jumped from near $100 to over $130, driven by macro relief after President Trump paused tariffs.
- Analysis shows that SOL has broken out of a falling wedge pattern—a bullish signal—after holding support at $104.88.
- The SOL/ETH pair reached an all-time high of 0.081, indicating that the former has continued outperforming the latter.
- On the daily chart, the 12 EMA has crossed above the 26 EMA, suggesting that bullish momentum may drive SOL higher.
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Solana’s (SOL) price shows no signs of slowing down after registering a 35% rally in the last seven days. Before the rebound, Solana’s price showed readiness to drop below the $100 mark.
But after U.S. President Donald Trump paused tariffs, the tides changed, with SOL rising above $130. However, the altcoin’s market value is not the only part experiencing a surge, as the SOL/ETH pair has also reached its highest daily close.
Does this imply higher highs for SOL? Let’s find out in this analysis.
Solana Uptrend Strengthens
Technically, Solana’s price action on the daily chart showed that the token had broken out of a falling wedge. A falling wedge is a bullish chart pattern that forms when the price moves downward but within converging trendlines — meaning the lows get lower, but the highs get lower, too, and the range narrows over time.
As seen below, the SOL breakout happened after buyers slowly stepped in with increased volume. This put sellers out of the way, with the bullish confirmation appearing after the altcoin rose above the upper trendline of the wedge.
From what we observed, Solana’s price rose above $130 after bulls defended the support at $104.88 and breached the resistance near $122.35.
Following this move, the Relative Strength Index (RSI) has risen above the 50.00 neutral line, indicating bullish momentum. If sustained, Solana’s price might continue to climb higher.
Record SOL/ETH Ratio Reinforces Bullish Case
Another indicator suggesting a sustained hike is the SOL/ETH ratio. The SOL/ETH ratio is the price of Solana denominated in Ethereum (ETH). It tells you how many ETH it takes to buy 1 SOL.
The ratio goes up when SOL is gaining strength against ETH. On the other hand, the ratio drops when ETH outperforms SOL. The SOL/ETH ratio has risen to 0.081, which represents an all-time high.
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On the daily chart, CCN observed that the historic high happened after the pair broke out of a bull flag. Further chart assessment also shows that the Money Flow Index (MFI) has increased.
The increase in the MFI rating indicates rising buying pressure for SOL as opposed to ETH. If this trend continues, Solana’s price might increase to $200, while the SOL/ETH pair could climb toward 0.084.
SOL Price Analysis: Golden Cross Leads the Way
Further evaluation of the daily chart shows that a golden cross has followed the Solana price increase. For context, a golden cross forms when the shorter Exponential Moving Average (EMA) rises above the longer one.
Zooming into the image below, we observe that the 12 EMA (blue) has crossed above the 26 EMA (orange). Also, the Moving Average Convergence Divergence (MACD) reading has turned positive, reinforcing the bullish momentum around SOL.
Should this trend remain the same, Solana’s market value might surpass the resistance at $137.59. If successful, the next target for the cryptocurrency could be a run toward $171.24, near the 0.618 golden pocket ratio.
On the flip side, if selling pressure increases and SOL falls below the lower trendline of the falling wedge, this prediction might not come to pass. In that case, SOL might decline below $100.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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