Solana (SOL) started 2025 on a high note, with analysts pointing to the start of a new bull run for the cryptocurrency.
It is noteworthy that the analysis carried out Tradingshot highlights Solana’s recent price action, suggesting the asset is poised for a sustained uptrend.
The cryptocurrency rose to a 10-day high, rising towards the 50-day moving average (1D MA50), its first significant resistance level. The analyst views this rally as the start of a new bullish phase within Solana’s five-month Up Channel pattern, supported by several key indicators and consistent historical performance.
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Solana’s recent bounce from the “support zone 2” at $179, matching its October 29 high, was a critical signal for its next move, as highlighted by Tradingshot.
This move mirrors the pattern observed in September 2024, when a bounce from the “support zone 1” at around $121 triggered the previous bullish leg of the ascending channel.
This consistency in Solana’s price action has bolstered analysts’ confidence in the company’s strong growth potential.
In addition to this bullish sentiment, the cryptocurrency’s December low moved closer to testing the 200-day moving average (1D MA200), a critical long-term support that now coincides with the lower boundary of the ascending channel.
Historically, this trendline has acted as a strong base for price recovery, further cementing its role in Solana’s upward trajectory.
Additionally, the December 22 low pushed the one-day RSI into oversold territory around 30, a level that has consistently generated strong buy signals since April 2024.
Every RSI oversold signal has historically taken Solana to at least the 0.786 Fibonacci retracement level, which currently stands at $242.
The road ahead
Based on these factors, the analyst has set a short-term target of $242, which corresponds to the 0.786 Fibonacci retracement level. If Solana breaks the $265 resistance, it could confirm the next bullish breakout and open the way to $380.
This target coincides with the Higher Highs trendline of the ascending channel and represents a 119% gain from the December low, reflecting the gains achieved during the first bull leg of the pattern.
Factors contributing to Solana’s optimistic outlook
The Solana ecosystem is attracting significant attention, with approximately $424.87 million in stablecoins flowing into its network over the past week.
According to Finbold, this is the largest inflow of any blockchain, indicating Solana’s growing prominence in the decentralized finance (DeFi) space.
An influx of stablecoins often indicates growing demand and increased liquidity for DeFi protocols, which bodes well for the ecosystem.
In addition, data from Defillama shows that Solana’s total value locked (TVL) has risen to $9.13 billion, reflecting strong adoption in DeFi, NFTs, and gaming.
The expected approval of Solana spot ETFs is another major catalyst, with players such as VanEck, 21Shares and Bitwise filing for it.
Market sentiment around Solana remains highly optimistic. Polymarket bettors estimate a 77% chance the SEC will approve the Solana spot ETF in 2025.
Artificial intelligence models have also influenced Solana’s future, predicting that the cryptocurrency could reach a market capitalization of $200 billion in the first quarter of 2025, further highlighting its bullish trajectory.
Solana price analysis
At press time, Solana was trading at $209.17, registering a daily gain of approximately 1.25%. On the weekly chart, the cryptocurrency rose 10%, reflecting growing investor confidence and development dynamics in 2025.
Given TVL’s growth, increasing institutional interest and the potential approval of the Solana ETF, SOL’s outlook remains highly positive.
Analysts and investors are closely watching Solana’s ability to break through critical resistance levels, which could confirm its next major move higher in 2025.
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