Solana (SOL) Price: Breaks Key Resistance as Whale Transfers $71.95 Million

TLDR

• Solana price breaks out from a descending parallel channel, with potential upside to $213
• A whale transferred 494,153 SOL ($71.95M) to Coinbase Institutional
• Technical indicators including Parabolic SAR and MACD have turned bullish
• SOL needs to break the $170-$185 resistance zone to confirm uptrend
• Solana network usage outpaces Ethereum with 73.4 million monthly active addresses

Solana’s price has shown strong momentum in recent days, breaking through a key resistance level that had been containing its price action for weeks. This technical breakthrough coincides with major whale activity and improving market indicators, suggesting a potential shift in market sentiment for the popular cryptocurrency.

The price of SOL, Solana’s native token, has been confined within a descending parallel channel for several weeks. However, recent price action shows it attempting to break free from this pattern, catching the attention of traders and analysts alike who are watching to see if this move will be sustained.

Technical analyst Ali Martinez shared a chart highlighting Solana’s move above its downtrend resistance line. According to Martinez, if this breakout is confirmed, SOL could rally toward the $213 price target. This would represent a major shift from the bearish trend that has dominated recent price action.

Not all analysts share this optimistic outlook. Analyst Seth maintains a more cautious stance, noting that SOL price still remains within the broader channel pattern and faces resistance at critical price levels that must be overcome.

#Solana the channel. $SOL pic.twitter.com/0FRqqQbiRQ

— Seth (@seth_fin) March 4, 2025

Adding to the market dynamics, blockchain tracking platform Whale Alert reported a major transaction involving 494,153 SOL tokens, valued at approximately $71.95 million. This substantial amount was transferred to Coinbase Institutional, a service catering to institutional investors.

The whale transfer has sparked speculation about its potential market impact. If these tokens are intended for sale, it could create selling pressure that might hinder the current breakout attempt. Conversely, if the transaction relates to over-the-counter trading or institutional accumulation, it could indicate growing demand for SOL, supporting further upward movement.

Recent Solana whale activities have been closely monitored by market participants. One whale’s $14 million accumulation has reportedly helped ease selling pressure, supporting SOL’s rebound to the $145 price level. Market observers suggest that if this momentum continues and SOL breaks through the $170 resistance level, it could push toward $180.

Technical Analysis

Technical indicators are also painting a bullish picture for Solana. The Parabolic SAR (Stop and Reverse) indicator, shown as dotted blue lines on price charts, has shifted below the price candles.

This movement typically signals a potential trend reversal to the upside, suggesting that selling pressure is weakening while buyers gain control.

The Moving Average Convergence Divergence (MACD) and Histogram further support this bullish outlook. The MACD line has begun converging toward the signal line, indicating reduced bearish momentum.

Additionally, the histogram bars have started turning green, signaling a potential crossover into positive territory. These changes suggest building buying pressure that could drive prices toward and beyond resistance levels.

Despite these positive signals, SOL faces a historical resistance zone between $175 and $185 that will serve as a critical test. For the breakout to be confirmed as genuine, Solana’s price needs to maintain closes above these levels with substantial trading volume. If it fails to do so, rejection at these levels could push the price back into the descending channel.

Solana Price on CoinGecko

On-chain data provides additional context for Solana’s price action. The Solana network has shown impressive growth in user adoption, now boasting 73.4 million monthly active addresses compared to Ethereum’s 7.4 million. This tenfold advantage in active users demonstrates Solana’s growing popularity among blockchain users.

The network’s transaction efficiency has also drawn positive attention. Solana’s ability to process transactions quickly and at low cost has made it an attractive alternative to Ethereum for certain applications, particularly in decentralized finance and NFT markets.

Some analysts have made bold predictions based on these network metrics, suggesting that SOL could reach $500 before Ethereum’s price hits $5,000. While such predictions should be viewed with appropriate skepticism, they reflect growing confidence in Solana’s long-term value proposition.

For traders watching SOL’s current price action, the key levels to monitor are the immediate resistance at $170 and the historical resistance zone between $175 and $185. Breaking and holding above these levels would strengthen the case for continued upward movement.

On the downside, if the breakout attempt fails, support levels around $140 could come into play. The success of the current breakout attempt will largely depend on overall market conditions and whether buying volume increases as price approaches resistance levels.

As SOL tests these critical resistance levels, the next few days will be crucial in determining whether this is the beginning of a sustained uptrend or merely a temporary bounce within the existing range.

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