Saad Ullah
Solana (SOL) is setting up for a potential breakout that could push the crypto toward $164, with technical patterns and strong fundamentals aligning.
Solana looks ready to make its next big move. The crypto has been quietly building momentum, and analysts are pointing to some pretty compelling signals that suggest SOL could be heading for $164 soon.
SOL Shows Classic Breakout Setup
Analyst Ali spotted something interesting on July 9 when he posted about Solana forming a symmetrical triangle on the 4-hour chart. This pattern shows two converging trendlines with lower highs and higher lows - basically, the price has been getting squeezed into a tighter range. When this happens, it usually means a big move is coming.
The magic number here is $153. That's where the upper boundary of this pattern sits, and if SOL can break above it, Ali thinks we could see a quick move to $164. Right now, Solana is trading right at this crucial level, which makes things pretty exciting for traders watching this setup.
The technical indicators are backing this up too. The MACD line has crossed above the signal line on the 4-hour chart, and both are trending upward. This usually means buyers are getting more interested and the price might keep climbing.
Another analyst, SDX, noticed that SOL has been coiling below a descending trendline that's been in place since the start of the year. If it breaks out and retests this level successfully, it could trigger an even stronger uptrend - maybe even pushing toward a new all-time high.
Solana (SOL) Gets Institutional Backing
The technical setup is nice, but what's really interesting is what's happening behind the scenes. SOL just got included in Trump Media and Technology Group's proposed "blue-chip" crypto ETF, according to an SEC filing. That's pretty significant institutional recognition.
Even better, the SEC has reportedly asked issuers to amend and resubmit their spot Solana ETF applications by the end of July. This isn't a rejection - it's actually a good sign. When the SEC asks for amendments, it usually means they're open to moving forward if certain conditions are met. This kind of regulatory engagement often gets traders excited because it suggests approval might be getting closer.
Meanwhile, Solana has been crushing it in the real-world asset tokenization space. Data from Dune Analytics shows tokenized RWAs on Solana hit a record $418 million, with active users jumping 631% over the past 30 days. That's massive growth.
Network Activity Explodes for SOL
The network activity numbers are pretty wild too. Daily active addresses on Solana shot up to 15.39 million from just 3.46 million the previous day - that's a 345% increase overnight. This kind of surge shows real people are actually using the blockchain more.
Stablecoin supply on Solana has also been steadily climbing over the past week. Since stablecoins are basically the fuel that powers DeFi trading and payments, this suggests more users are coming to the platform for actual transactions.
All of this activity supports the bullish case for SOL. The combination of technical breakout signals, potential ETF approval, and exploding network usage creates a pretty compelling story. Just keep in mind that SOL is still trading about 48% below its all-time high of $293, so there's definitely room to run if things go well.
The $164 target might just be the beginning if all these pieces fall into place.
Saad Ullah
