With Donald Trump signing an executive order for the U.S. crypto strategic reserve, the crypto market witnesses a quick pullback. This resulted in a quick turnaround in Solana, resulting in a 24-hour low at $135.
However, the bullish comeback has driven the SOL price back to $143, reflecting a lower price rejection. With the bullish recovery, the SOL price trend hints at a potential turnaround to challenge an overhead resistance trend line.
Will this turnaround result in a breakout rally to reach the $200 psychological mark? Let’s find out.
Solana Price Analysis Teases Breakout Rally to $200
In the 4-hour price chart, SOL price reveals a long-coming resistance trendline in the medium term with the lower-high formations. However, the short-term recovery from the $125 psychological spot has also created a support trendline.
With the two converging trendlines, SOL price action is hinting at a symmetrical triangle pattern. Currently, Solana trades close to the lower support trendline at the SOL pivot level, near $140.
With multiple lower price rejections, the SOL price is projecting a potential bounce back to challenge the overhead resistance trendline. However, the consolidation near the support level has led to a negative crossover in the MACD and signal lines.
While the price volatility near the S1 pivot level has significantly increased, the broader market stability teases a bullish comeback in SOL price above the $150 psychological mark.
Here’s How GrokCoin and SIMD-0228 Could Start a Solana Bull Run
With the announcement of SOL in the US Crypto Reserve, the Solana meme coin GROK coin has surged to a market cap of $27 million. With $116 million in trading volume, GROK is a rising memecoin with its identity tied to artificial intelligence.
????NEW: Solana memecoin “GROKCOIN” surged to a $27M market cap with $116M in trading volume after @grok suggested the name, calling it playful and tied to its AI identity. pic.twitter.com/dM0G1g0yey
— SolanaFloor (@SolanaFloor) March 7, 2025
This hints at a potential comeback in the Solana memecoins to drive its network activity back to $2024 levels. Furthermore, the recent discussions on Solana’s improvement document 0228 are likely to witness a vote count this weekend.
The new development proposal will mark a significant change in tokenomics if approved. With the new Solana improvement document 0228, the issuance of SOL tokens will witness a major shift based on the staking over the network.
If the staking falls below 33%, inflation will be adjusted to promote more staking. However, if the network witnesses a large amount of staking, the inflation could drop below 1% per year.
SOL Price Targets
Based on the pivot levels and the triangle pattern, a bullish breakout will likely challenge the R1 resistance level at $197. However, the key fundamental catalyst remains the SIMD0228 voting this weekend. In case the proposal gets approval, the chances of a bullish spike are likely to result in a triangle breakout rally. On the flip side, the crucial support for Solana remains at the $125 mark, followed by the $100 psychological level.