- Solana trades below $203 resistance; breakout could trigger a move toward the $270 target.
- Open interest rises and funding turns positive, signaling growing bullish sentiment.
- TVL hits $9.85B and DEX volume exceeds $82B, supporting continued network strength.
Solana (SOL) is trading near a critical resistance level, with analysts identifying $203 as the selling wall to watch. A successful breakout above this threshold could open the door for a move toward $270. At the time of writing, Solana was trading at $177, holding just below its 20-day EMA.
Technical Setup Suggests a Breakout May Be Forming
According to analysis prepared by CW8900, SOL could rise to $270 if it clears the $203 selling wall. This level has acted as a barrier since July 22, when SOL reached a high of $206. The price has since retraced, with current support forming near $178.25, the 20-day exponential moving average.
Solana has printed three consecutive lower daily closes, although open interest continues to rise, suggesting position building during the pullback. Funding rates have shifted from negative to slightly positive, now at 0.0079%, showing a tilt toward bullish sentiment.
On-chain metrics reflect cooling activity, with daily active addresses down 16% over the past week, based on Artemis data. However, trading volume remains strong, and liquidity at $183.30 holds approximately $11 million in leveraged positions.
Golden Cross Potential and Network Growth Reinforce Upside Outlook
Analysts also point to a potential golden cross forming on the daily chart. According to Open4profit, the last golden cross took SOL from $156 to $293. A similar crossover could signal a bullish continuation, especially if SOL holds above the $175 support level.
Solana’s network showed strong growth in July. TVL rose 14% to $9.85 billion, and DEX volumes exceeded $82 billion, according to DefiLlama. Revenue increased by 13% month-over-month, reaching $4.3 million.
Although some cooling is evident, overall activity remains elevated compared to June levels. According to analysts, SOL must break above $188 and sustain support above $175 to resume its upward momentum. A breakout above $203 could bring the $270 target into focus.
