On July 15, the price of Solana climbed to roughly $78 following a minting of 250 million USDC on its network, complemented by favorable inflation data from the U.S., which ignited a fresh wave of buying in the cryptocurrency markets.
Summary
- Solana’s price increased towards $78, driven by enhanced on-chain liquidity from the large USDC mint and an improved risk appetite.
- Technical analysis suggests a breakout above a descending channel, establishing $80 as the next major resistance level.
- Growing numbers of active addresses, institutional developments, and liquidation zones bolster prospects for further gains, with the $70-$75 range serving as crucial support.
This momentum gained traction following the minting of $250 million in USDC by the USDC Treasury on Solana, which infused liquidity into the ecosystem as traders sought out riskier investments after recent U.S. inflation data. Capital quickly flowed into decentralized exchanges based on Solana, enabling SOL to recover from previous downtrends while the overall crypto market also saw an upturn.
Earlier selling pressure had kept Solana’s price well below its peak in May, impacted by geopolitical concerns, institutional asset distributions, and reduced on-chain activity which dampened market sentiment.
However, today’s recovery demonstrates stronger participation, with daily trading volume surpassing $2.1 billion, suggesting that buyers—rather than mere short-term speculators—are fueling the rise.
Technical structure indicates potential test of $80
On the daily chart, Solana (SOL) is maintaining its position above a solid support zone between $70 and $75, consistently defending this range over the past weeks. The price is currently above the 20-day and 50-day moving averages, around $73.3-$74, but still below the declining 100-day moving average near $80.3 and significantly under the 200-day moving average close to $91.
A stable closing above the 100-day average would highlight the crucial psychological level of $80, paving the way towards the May swing high near $82.
The 4-hour chart strengthens the optimistic outlook. SOL has broken above a descending channel that constrained price movement since early July, with the RSI recovering to about 52 from previously oversold territory.
The Aroon Up metric reading of approximately 93 significantly surpasses the Aroon Down line, indicating that buyers exert short-term momentum, despite nearby resistance just under $80.
Derivatives positioning further solidifies this technical viewpoint. CoinGlass liquidation data shows dense short liquidation clusters from $78.5 to $80, with additional groups extending towards $81.5.
A decisive break through these levels could trigger forced buying from bearish positions, while the largest zones for long liquidation remain centered around the $76-$76.5 level, making it critical for bulls to protect this area.
In light of recent updates, analyst Ali Martinez has pointed out that Solana has regained a bullish setup as its SuperTrend indicator has turned positive for the first time since October. He stated:
“If buying pressure persists, $SOL may aim for $96 or even $121. Nonetheless, $60 remains the key level to watch.”
Beyond the charts, network fundamentals are also showing positive signs. Active addresses have increased towards seven million, and anticipation is building ahead of the Alpenglow upgrade, which aims to reduce transaction finality to approximately 150 milliseconds later this quarter.
Solana has also bolstered its institutional presence through a partnership with SBI Holdings focused on expanding on-chain financial infrastructure in Japan. Additionally, the total value of tokenized real-world assets on the network has surged to about $3.3 billion.
A breach below key support could undermine the bullish outlook
Despite the bullish momentum, several hurdles remain. The declining 100-day moving average around $80 presents a significant technical challenge, and failure to surpass this level could confine SOL within its multi-week consolidation phase.
A decline beneath the 20-day and 50-day moving averages would shift attention back to the $75 support zone, where leveraged long positions are heavily concentrated.
Macroeconomic risks are also unresolved. Renewed geopolitical tensions, rising Treasury yields, or unexpectedly robust U.S. economic data could dampen hopes for monetary easing and exert pressure on risk assets in the crypto sector.
If selling accelerates and Solana falls below the $70-$75 support zone, the bullish breakout thesis might weaken considerably, while Ali Martinez’s long-term invalidation level near $60 would once again be in focus.
Disclosure: This article does not provide investment advice. The content and materials presented on this page are for educational purposes only.
