Solana's MACD Indicator Signals Potential Price Surge
Solana's (SOL) moving average convergence divergence (MACD) indicator has issued a 'buy' signal on its weekly chart, historically a precursor to significant price rallies. According to Cointelegraph, this signal has previously led to Solana price increases ranging from 100% to 860%. The MACD, a widely used momentum indicator in technical analysis, helps traders assess the strength, direction, and duration of a trend in an asset's price. The last occurrence of this 'buy' signal was in May 2025, which preceded a 100% rally, pushing the price above $250 by September 18, 2025, from around $125. In previous years, SOL/USD gains were 860% in 2023 and 617% in 2021.
The relative strength index (RSI) is also showing signs of recovery, having climbed to 35 from 25 in mid-February. This level previously marked Solana's bear market bottom in 2022, which was followed by a 2,500% surge to $210 in March 2024, from below $10 in December 2022. Analyst Tyler Hill noted that Solana's RSI has reached sub-35 levels for the first time in 1,200 days, indicating a potential market bottom similar to past cycles. Fellow analyst Sixtysecondalpha highlighted that the MACD cross, combined with the RSI's bullish divergence, suggests Solana's price is poised for its most significant move in two years. Other analysts believe Solana's market setup indicates a macro bottom, paving the way for a continued recovery to new highs.
Solana's price action has formed a symmetrical triangle on the daily chart, with a breakout target of approximately $130, representing a potential increase of over 50.5% from current levels. The pattern will resolve if the SOL/USD pair breaks above the triangle's resistance line at $90. However, resistance from the $90-$96 zone, where the 100-day moving averages converge, could limit the breakout. Solana's cost basis distribution data reveals a large supply overhang above the spot price, with investors holding around 9.9 million SOL at an average cost of $90-$92, creating a potential resistance zone. This concentration suggests many investors may sell at break-even, potentially stalling Solana's rally. As reported by Cointelegraph, Solana's immediate resistance is at $91, which bulls need to flip into support to confirm a trend change.