TL;DR

Solana retests breakout level after triangle formation, with traders watching $180 for confirmation. On-chain data shows 8M SOL bought at $190, hinting at strong support above resistance. Network upgrade boosts Solana’s block capacity by 66%, with MetaMask adding native support.

SOL Pulls Back to Key Breakout Level

Solana (SOL) is trading around $181 after a brief drop of just over 2% on the day. Over the past week, the price has still been up slightly. On the daily chart, the token has broken above the top of an ascending triangle, a structure that has been forming since March, and is now retesting the breakout zone.

Analyst Jonathan Carter pointed to this area as a possible support level. 

“A successful bounce could confirm the bullish breakout and drive the price toward targets at $205, $225, and $268,” he said. 

The triangle shows a clear uptrend in lows while the price has been pressing against resistance near $180.

#SOL

Solana is retesting the upper border of an ascending triangle pattern on the daily chart

A successful bounce could confirm the bullish breakout and drive the price toward targets at $205, $225, and $268 pic.twitter.com/aNCiKRegDx

Breakout Targets: $205, $225, $268

If the retest holds, traders are watching for price moves toward $205 first level, where the asset reversed in April. The next area is $225, where SOL paused during a range earlier this year. A breakout beyond that would put $268 in play, which matches the measured height of the triangle from the breakout zone.

Meanwhile, there is a wider resistance area around $295, but that would only become relevant after a clean move above $268. Volume has been moderate during the recent push, and the current pullback gives the market a chance to test whether buyers will defend the breakout.

On-Chain Data Supports the Range

As CryptoPotato reported, data shows that over 8 million SOL were previously bought near $190. This could act as a key level if the price moves higher. Above that, fewer traders are positioned to sell, which may reduce selling pressure and make it easier for the price to move.

The RSI is close to 70. While this signals some overextension, it does not yet suggest a sharp reversal. A short consolidation would be standard in this kind of setup.

Network Growth and Market Signals

Ali, another market analyst, said the TD Sequential tool is flashing a buy signal for SOL. This comes just as the Solana blockchain prepares for a 66% increase in block capacity from 60 million to 100 million Compute Units under a network upgrade.

Separately, MetaMask and Transak confirmed a partnership that brings native support for Solana to MetaMask. This marks the wallet’s first major step beyond Ethereum and will allow users to buy SOL with fiat directly through Transak.