Solana (SOL) has experienced notable price momentum in recent weeks, with an 18% weekly gain pushing the token to $181 as of August 9 [1]. This rally has reignited discussions around a potential breakout above the critical $184–$185 resistance level, which analysts suggest could set the stage for a near-40% price increase toward $256 [1]. A successful close above this level would represent a key turning point for the altcoin, potentially confirming the start of a broader uptrend.

However, the path to this level is not without challenges. On-chain data from CoinGlass revealed $15.18 million in exchange inflows on August 9, often signaling investors preparing to sell into strength [1]. Additionally, 24-hour trading volume dropped by 10% compared to the previous day, suggesting reduced participation from traders at higher price levels [1]. This decline in volume could reflect profit-taking or uncertainty about the asset’s direction, especially following past failed breakouts.

The liquidation clusters also highlight key technical levels. A support level was identified at $174, while a major resistance appeared near $184 [1]. Cumulative long liquidation leverage stood at $436.74 million, significantly higher than the $23.79 million in short-side leverage, emphasizing the current bullish dominance [1]. Still, the $185 level remains a make-or-break point for the asset.

From a technical standpoint, Solana has recently broken above a descending trendline, which AMBCrypto attributes to the current rally [1]. The asset’s RSI is at 57, below the overbought threshold, indicating room for further upward movement [1]. However, the Supertrend line remains at $190.33, signaling an active downtrend that could see sellers reassert control if bulls fail to push above key levels [1].

A broader market shift, including the U.S. president’s executive order allowing cryptocurrencies in 401(k) accounts, has also contributed to positive sentiment [5]. This move led to a 2% price gain for both Ethereum (ETH) and Solana (SOL) within 24 hours and a 40% surge in trading volumes for SOL, highlighting renewed investor interest [5]. The regulatory change could unlock over $8.7 trillion in retirement savings for crypto investing, creating a new liquidity source for the market.

Looking ahead, analysts are divided. While some predict a potential move toward $265.46 by the end of 2025 [7], others, like Gemini, suggest Solana may struggle to cross the $220 threshold in the near term [6]. Nonetheless, bullish chart patterns and growing institutional interest continue to support the possibility of a 40% price rally from current levels [1].

As the market awaits potential regulatory milestones such as new spot altcoin ETFs, Solana’s performance will be closely watched. With $185 acting as a pivotal threshold, the coming days could determine whether the token continues its upward trajectory or faces another period of consolidation [1].

Source: [1] Solana – How THIS level could help SOL prices rally 40% (https://ambcrypto.com/solana-how-this-level-could-help-sol-prices-rally-40/)

[5] Best Altcoins to Buy: ETH and SOL Rise as U.S. Investors Could Soon Add Crypto to 401k (https://icobench.com/news/best-altcoins-to-buy-eth-and-sol-rise-as-u-s-investors-could-soon-add-crypto-to-401k/) [6] Gemini Predicts Solana Might Not Cross $220 (https://coincentral.com/gemini-predicts-solana-might-not-cross-220-but-charts-show-this-0-009-coin-could-rally-10x-soon/) [7] Solana Price Prediction (https://www.bitget.com/price/solana/price-prediction)