Solana price tests major resistance at $178 as bullish breakout nears confirmation
Solana price hovers near $178 neckline as bulls prepare for breakout continuation
Solana (SOL) is trading around $175.56, approaching a major inflection point as it tests the neckline of a multi-month cup and handle formation. The pattern has matured gradually since early 2025, rebounding from the $120 base and now nearing critical resistance between $176 and $178.
Highlights
- Solana trades near $175.56, testing neckline of multi-month cup and handle pattern
- Open interest and volume surge ahead of possible breakout; RSI sits near bullish 69 level
- Key breakout zone at $178 could open path to $200 and $230 if confirmed
Despite recent strength, the breakout is not yet confirmed, as SOL still requires a decisive daily close above this zone to validate the bullish setup.
Market structure signals growing momentum
The current setup follows a decisive breakout above a long-standing descending trendline that had capped price since late 2024. That shift flipped market structure bullish and positioned SOL above its key exponential moving averages, all now aligned tightly between $155 and $159. These averages are acting as a strong support base, underscoring the growing momentum behind the move.
SOL price dynamics (Source: TradingView)
Technical indicators reinforce this view. The Relative Strength Index (RSI) is trending near 69.26, suggesting a bullish bias while still below overbought thresholds. A confirmed breakout above $178 would complete the cup and handle formation, setting up an initial price objective near $200, with extended potential toward $230, based on the measured pattern depth.
Derivatives data highlights bullish buildup
Open interest has risen 8.85%, while trading volume has surged 60.51%, indicating heightened positioning ahead of a possible breakout. Options volume has also nearly tripled, up by nearly 200%, reflecting increased engagement from institutional players. Binance data shows a heavily long-skewed ratio of 3.0853 among top traders, confirming broad market conviction.
Funding rates remain moderately positive at 0.0121%, suggesting that longs are in control but not yet crowded. Based on this combination of price structure, momentum, and derivatives sentiment, a successful breakout above $178 could accelerate price toward $195 in the short term and $230 in the coming weeks i.e., a 11% to 31% upside from current levels. If the breakout fails, price could briefly correct toward the $160–$165 area, which remains a key support cluster.
As noted in our previous analysis, Solana had broken above its descending trendline and entered a bullish consolidation phase near key resistance. With the price now hovering just below the neckline, focus turns to whether a clean close above $178 can unlock a new rally phase toward $195 and beyond.
