Technical Analysis of Solana: Market Outlook on July 4, 2025

Technical analysis of SOL on July 4, 2025, explores resistance/support zones and indicators.

The technical analysis of Solana (SOL) on July 4, 2025, indicates a cautiously bullish outlook for this cryptocurrency. SOL’s current price is approximately $156.37, down 0.4% in the past 24 hours. With a daily trading volume of about $3.47 billion and a market cap of $73.48 billion, Solana maintains strong investor interest as a leading altcoin. On the daily timeframe, Solana is trading within a medium-term descending channel, but signs of buyer strength are emerging. An inverse head-and-shoulders (IH&S) pattern has recently formed on the 4-hour timeframe, with a breakout above the neckline at $150 confirming a bullish signal. Additionally, a double-bottom pattern in the $140–146.92 range highlights strong support in this demand zone, which has historically acted as a price reversal point, suggesting active buyer participation. Technical indicators provide mixed signals. The Relative Strength Index (RSI) on the daily timeframe is around 55, indicating neutral momentum with a bullish bias. However, bearish divergences in RSI and MACD on shorter timeframes suggest a potential correction toward $145. The 50-day moving average (MA50) at $146 acts as dynamic support, while the 200-day moving average (MA200) at $162.27 poses resistance. A break above this level could push the price toward $165.70 and then $183.18. Key resistance zones are at $165.70 (0.5 Fibonacci level) and $183.18 (prior supply zone). A breakout above these levels, supported by rising volume, could target $200. Conversely, support zones at $146.92–140 and a deeper $122–111 range could prevent sharp declines. The MACD has recently crossed above the signal line, with a green histogram indicating weak bullish momentum. From a price action perspective, Solana is testing the $146–150 demand zone. If the price consolidates here, a bullish move toward $165 is likely. However, a break below $140 could lead to a decline toward $130, aligning with the 61.8% Fibonacci level. Trading volume is increasing, suggesting new buyer interest, but declining volume near resistances could signal weakening momentum. A suggested trading strategy involves buying in the $146–150 support zone with a stop-loss below $140, targeting resistances at $165 and $183. Traders should monitor volume changes and indicator signals, as crypto market volatility can be unpredictable. Overall, Solana shows growth potential due to bullish patterns and strong supports, but traders should remain cautious of short-term risks.