TLDR: Solana (SOL) Price Breaks Above Resistance Targeting $250

Solana has been making waves in the crypto market with a fresh 8% price increase on May 1st, pushing it above the $150 mark.

Solana (CRYPTO: SOL) price rose by around 8% on Monday, May 1, trading above the $150 mark as the second-largest Layer-1 blockchain by Total Value Locked (TVL) showed strong signs of recovery from a period of consolidation, with technical patterns suggesting further upside potential.

The price movement comes as Solana is establishing itself as a premier blockchain network with booming on-chain activity.

Solana’s TVL has grown impressively—approximately 25%—over the past 30 days, to more than $8 billion, which showcases increased user confidence and network utilization.

Also, noteworthy is the dramatic growth in daily decentralized exchange (DEX) volumes, which have exploded over 110% since April 11th alone, reaching $3.14 billion. This surge in trading activity highlights the rapid adoption of Solana’s ecosystem.

Last week, Solana processed $21.6 billion in volume, outpacing the entire Ethereum Layer-2 ecosystem in weekly DEX activity. Among specific protocols within the Solana ecosystem, Sanctum, Raydium, and Lifinity showed increases in TVL and weekly volumes last week.

Technical Outlook Points To Higher Targets

The technical picture for Solana presents a compelling bullish case. A V-shaped recovery pattern has been unfolding on the weekly chart since January, suggesting a swift rebound following a downturn. This pattern targets the $250 level as its “neckline” for complete formation.

In April, SOL broke out decisively from a long-term declining price channel on the daily chart with increased volume, confirming a shift from a bearish to a bullish trend. The current consolidation phase appears to be a normal part of this upward movement.

Several key technical levels are being closely monitored by traders. Having breached the negative trend line at around $149, Solana now faces resistance in the $152-$154 range. The bulls must clear this area to continue the V-shaped recovery toward the $250 target.

Strong support has emerged in the $145-$148 range below the current price. The Relative Strength Index (RSI) is showing strength as it moves higher, indicating increasing momentum in favor of the bulls.

Demand signals also appear to be positive for SOL. Open long positions in the futures market were seen increasing ahead of Solana’s most recent surge above the $150 mark. At $5.86 billion, Solana’s Open Interest ranks third in the crypto sphere, while perpetual futures funding rates have become positive.

ETF Approval Could Boost Institutional Interest

Furthermore, the possibility of a US spot Solana ETF approval adds to the optimistic outlook. Bloomberg Intelligence analysts have adjusted their estimated probability of an approval in 2025 to 90%, signaling an optimistic outlook.

Such an approval would likely serve as a major driver for future institutional demand and broader market access for SOL.

For the short-term outlook, Solana’s ability to clear the resistance zone between $152 and $154 will be crucial in determining its price direction. A successful move above $154, especially with a close above the primary barrier at $158, could pave the way for further gains toward the $165 and $180 resistance levels.

If SOL fails to break above the $154 resistance, it might experience another decline. The first level of support lies at the $150 zone, with major support at the $147 level. A candle close below $145 could trigger further selling pressure, pushing the price toward the $140 support zone.

Hourly technical indicators show that the MACD for SOL/USD is gaining momentum in the bullish zone, while the RSI is holding above the 50 level.

Solana continues to display strong fundamental growth alongside increasing demand signals and explosive on-chain activity. It is also performing well under favorable technical patterns, including the V-shaped recovery on the weekly chart and the channel breakout on the daily chart.