- Solana nears a cup-and-handle breakout, with $261–$296 as the critical resistance zone.
- Institutional inflows surge as Galaxy Digital accumulates $1.55B in SOL within five days.
- On-chain strength builds with TVL at $13.22B and $255M stablecoin inflows in 24 hours.
Solana (SOL) is showing strong momentum as technical indicators suggest a possible bullish trend. Analysts note that the token is forming a cup and handle pattern on the weekly timeframe. To confirm the pattern, SOL must break above the neckline positioned between $261 and $296. At the time of writing, SOL was trading at $235.
Cup and Handle Formation Nears Breakout
According to analysis prepared by Crypto Pulse, the Relative Strength Index (RSI) currently stands at 67.29, close to the overbought range. This points to a potential pullback, with SOL expected to retrace toward $210–$220 to fill the daily Fair Value Gap (FVG) before another upward move.
Chart analysis indicates a well-developed cup formation, with the handle consolidation showing a controlled pause before continuation. If SOL closes above the neckline range, projections suggest a move toward $500 in the longer term. Support remains around $210–$220, while the breakout zone at $261–$296 continues to be the key resistance level for confirmation.
According to CW8900, “a breakout of Solana’s cup-and-handle pattern is imminent,” with expectations that the move could occur as early as next week. The firm notes that this structure has been forming for months, and repeated tests of resistance levels suggest that momentum is building.
Institutional Demand and On-Chain Strength
Institutional participation has added weight to the bullish setup. SolanaFloor data shows Galaxy Digital recently purchased 1.2 million SOL tokens worth $306 million. This brought the firm’s accumulation to 6.5 million SOL, valued at $1.55 billion, over five trading days.
Forward Industries also announced a $1.65 billion private placement deal with Galaxy Digital, Multicoin Capital, and Jump Crypto. Meanwhile, Solana spot ETFs saw $15.9 million in inflows last week, underlining steady demand from traditional markets.
On-chain growth remains strong. Total Value Locked (TVL) reached a new high of $13.22 billion, while stablecoin inflows of $255 million in 24 hours confirmed rising usage of Solana’s ecosystem. With open interest at $16.58 billion and a long-to-short ratio of 1.08, futures data continues to suggest trader confidence in further upside.
