Solana (SOL) jumped more than 5% on July 3, riding the wave of a broader crypto market upswing. This rally is gaining momentum thanks to a resurgence in Solana-based meme coins and growing interest in a newly launched SOL-focused ETF, which is attracting attention from Wall Street investors.
Currently trading at $155, Solana has seen its 24-hour trading volume soar by 37% to $4 billion.
Technical Indicators Signal a Bullish Breakout
On the daily chart, SOL has rebounded from its June low of $127 and climbed past the 23.6% Fibonacci retracement level at $121. It has also formed a minor inverse head and shoulders pattern, often a bullish reversal signal.
More notably, SOL has developed a bullish flag pattern, a classic continuation setup. The flagpole spans from the year-to-date low of $93 to the recent high of $186, giving it a height of $93. The flag itself is a descending channel connecting the swing lows of May 19, June 9, and June 23.
SOL has now broken above the upper boundary of this channel and successfully retested it, confirming the breakout at $145. Based on the pattern’s height, this breakout points to a potential price target of $238, about 55% above current levels. A move past the $186 resistance would further validate this bullish scenario. Additional bullish signals include SOL trading above its 50-day moving average and strong support from momentum indicators like the Relative Strength Index (RSI).
However, this outlook would be invalidated if SOL falls below the key support level at $127.
Meme Coin Mania and ETF Buzz Fuel Solana’s Rise
Solana’s ecosystem is also getting a boost from a meme coin revival. The total market cap of Solana-based meme coins surged over 13% in the past 24 hours to $11 billion, with trading volume exceeding $4.3 billion.
Top performers include Bonk, Fartcoin, Pudgy Penguins, Dogwifhat, and Popcat, all of which have gained more than 20% over the past week. This surge in meme coin activity is driving higher transaction volumes and fees across Solana’s decentralized exchanges, which processed over $2 billion in volume in the last 24 hours alone.
Adding to the bullish sentiment is the launch of a new derivatives-focused Solana ETF with staking features. The fund recorded over $33 million in trading volume on its first day, signaling strong investor appetite and paving the way for future SOL-based investment products.
Outlook: $200 in Sight, $238 Within Reach
With a confirmed bullish flag breakout, rising meme coin momentum, and institutional interest via ETFs, Solana appears poised for a continued rally. The next key levels to watch are $200 and $238. Looking further ahead, a long-term target of $500 could come into play if the SEC greenlights additional SOL ETFs.
