TLDR
- Solana price is showing signs of a major breakout, potentially reaching $2,700 based on a cup and handle pattern.
- The current market structure suggests that Solana price may rally 1,500% from its current levels in the coming months.
- Solana price faces key resistance levels at $294, $787, and $1,314 before it can reach its target of $2,700.
- Institutional demand for Solana is increasing, with DeFi Development Corp purchasing over 153,000 SOL tokens.
- The likelihood of a spot Solana ETF being approved by the end of 2025 is at 99%, further boosting price expectations.
The Solana price may be on the verge of a sharp rally as market indicators align with institutional activity. Technical patterns and investment trends point to a possible 1,500% surge in the coming months or years. Analysts remain focused on a major breakout that has been forming since 2022.
Solana Price Breaks Out of Cup and Handle Pattern
Solana’s price is showing signs of a sustained upward movement after forming a cup-and-handle pattern over two years. This pattern started forming after the sharp correction that followed the collapse of FTX in late 2022. The correction ended in 2023 and was followed by a strong rally to $294 in January 2025.
As Solana price reached this high, it triggered profit-taking among traders, causing a temporary decline that formed the handle of the pattern. The handle now appears to be ending, as SOL tests the resistance of a falling channel. This test indicates that a major bullish trend might be emerging if the resistance is cleared.
Technical analysts have identified the 161.8% Fibonacci extension as the breakout target, placing Solana price at around $2,700. While this level remains distant, its basis in technical indicators strengthens the argument for a possible long-term rally. The current market structure supports the momentum needed to challenge key resistance levels.
Solana $SOL is about to melt faces! pic.twitter.com/WRrav5aAfM
— Ali (@ali_charts) July 16, 2025
Key Resistance Levels and Institutional Demand Boost Prospects
To reach the projected $2,700, Solana price must first surpass its previous high of $294 and resistance at $787. Beyond that, it must overcome the 141.4% Fibonacci level at $1,314, which may act as a strong barrier. These levels form the path to the larger breakout target.
Institutional interest is also building rapidly, supporting the potential for higher Solana price levels. DeFi Development Corp recently purchased over 153,000 SOL tokens, making it one of the largest holders of the asset. Continued accumulation from corporate buyers may provide the fuel needed for further upside momentum.
In parallel, rising crypto treasury allocations are contributing to market stability and renewed buying pressure. These developments align with technical projections that expect a significant Solana price rally ahead. The market is now watching to see if buying pressure continues to build above the $300 mark.
ETF Developments and Legislative Support Could Accelerate Gains
According to Polymarket data, the odds of a spot Solana ETF gaining approval by the end of 2025 have surged to 99%. A successful approval would likely drive significant institutional inflows and raise the Solana price substantially. The launch of the Rex Shares SOL staking ETF already demonstrated strong investor demand in early July.
The new ETF amassed $42 million in net value on its first day, outperforming the XRP futures ETF. Market analysts view this performance as a key indicator of confidence in Solana-based products. ETF-related momentum may act as a powerful catalyst in the coming quarters.
At the same time, legislative developments are unfolding in the United States that may benefit Solana. The GENIUS Act and other crypto-focused bills aim to support blockchain adoption and clarity.
