Solana Analysis on May 28, 2025: Will the Rally Continue?

Solana analysis on May 28, 2025: Price at $171, with potential to hit $200.

On May 28, 2025, Solana (SOL) traded at around $171, showing signs of a short-term bullish trend. Its daily trading volume reached approximately $3 billion, reflecting high investor activity. However, the market remains influenced by factors such as memecoin activity and macroeconomic uncertainties. Recent developments highlight significant growth in Solana’s ecosystem. The Solana chain saw a 73% surge in daily active addresses, and its decentralized exchange (DEX) trading volume hit $11.8 billion, the highest in 2025. This growth is driven by increased DeFi activity and the popularity of Solana-based memecoins. However, some analysts warn that heavy reliance on memecoins could pose risks to Solana’s sustained growth. From a technical perspective, Solana is testing resistance at $180. The Relative Strength Index (RSI) stands at around 54, indicating moderate bullish momentum. Breaking this resistance could push Solana toward $200. However, a drop below the $166 support could lead to a decline to $150. The rising 50-day moving average acts as dynamic support, signaling market health. The Alpenglow upgrade, which improves transaction finality to 100-150 milliseconds, is a key factor boosting confidence in Solana. This upgrade, combined with increased staking (with a total staked value exceeding $53.96 billion), underscores the network’s technical strength. Additionally, institutional adoption is growing, with firms like SOL Strategies expanding their Solana holdings. Nonetheless, macroeconomic risks, such as tighter monetary policies or trade tensions, could exert downward pressure on the market. A decline in memecoin trading volume may also weaken bullish momentum. Investors should monitor technical indicators like MACD and Bollinger Bands, which suggest potential volatility. Overall, Solana is well-positioned due to DeFi growth, network upgrades, and institutional adoption. However, reliance on memecoins and economic risks call for caution. Proper risk management and close market monitoring are essential for investing in Solana.