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Solana (SOL) has kicked off 2025 on a high note, with analysts pointing to the beginning of a new bullish leg for the cryptocurrency.
Notably, an analysis by Tradingshot highlights Solana’s recent price action, suggesting the asset is positioning itself for a sustained upward trend.
The cryptocurrency has surged to a 10-day-high, climbing toward the 50-day moving average (1D MA50), its first significant resistance level. The analyst sees this rally as the start of a fresh bullish phase within Solana’s five-month Channel Up pattern, supported by several key indicators and consistent historical behavior.
A closer look at the technical landscape
Solana’s recent rebound from ‘Support Zone 2’ at $179, which aligns with the October 29 high, has become a critical signal for its next move, as highlighted by Tradingshot.
This movement mirrors the pattern observed in September 2024, when a rebound from ‘Support Zone 1’ at around $121 triggered the previous bullish leg of the Channel Up.
Such consistency in Solana’s price behavior has strengthened the analyst’s confidence in the potential for sustained upward momentum.
Adding to this bullish sentiment, the cryptocurrency’s December low came close to testing the 200-day moving average (1D MA200), a critical long-term support that now coincides with the lower boundary of the Channel Up.
Historically, this trend line has acted as a reliable foundation for price recoveries, further cementing its role in Solana’s upward trajectory.
Additionally, the December 22 low pushed the one-day RSI into the oversold zone at around 30, a level that has consistently triggered strong buy signals since April 2024.
Each RSI oversold signal has historically driven Solana to at least the 0.786 Fibonacci retracement level, which currently stands at $242.
The road ahead
Based on these factors, the analyst has set a short-term target of $242, coinciding with the 0.786 Fibonacci retracement level. Should Solana break above the $265 resistance, it could confirm the next bullish breakout and open the path toward $380.
This target aligns with the ‘Higher Highs’ trend line of the Channel Up and represents a 119% increase from December’s low, mirroring the gains achieved during the first bullish leg of the pattern.
Factors fueling Solana’s bullish outlook
Solana’s ecosystem has been attracting significant attention, with nearly $424.87 million in stablecoins flowing into its network over the past week.
As reported by Finbold, this marks the largest inflow among all blockchains, signaling Solana’s growing prominence in the decentralized finance (DeFi) space.
Stablecoin inflows often indicate rising demand and enhanced liquidity for DeFi protocols, both of which bode well for the ecosystem.
Additionally, data from DefiLlama shows that Solana’s Total Value Locked (TVL) has surged to $9.13 billion, reflecting strong adoption in DeFi, NFTs, and gaming.
The anticipated approval of spot Solana ETFs is another major catalyst, with players like VanEck, 21Shares, and Bitwise filing applications.
Market sentiment around Solana remains highly optimistic, with Polymarket bettors assigning 77% odds that the SEC will approve a Solana spot ETF in 2025.
AI models have also weighed in on Solana’s future, predicting that the cryptocurrency could achieve a market cap of $200 billion in Q1 2025, further underlining its bullish trajectory.
Solana price analysis
By press time, Solana was trading at $209.17, registering a daily gain of approximately 1.25%. On the weekly chart, the cryptocurrency is up 10%, reflecting growing investor confidence and momentum heading into 2025.
With growing TVL, rising institutional interest, and the potential approval of Solana ETFs, the outlook for SOL remains highly bullish.
Analysts and investors are closely monitoring Solana’s ability to break through critical resistance levels, which could confirm its next major leg up in 2025.
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