Will Solana price rebound as it breaks multi-year bearish channel?

Solana price has been consolidating within the $75-$100 range since early February this year. Now, a confirmed breakout from a descending parallel channel puts the asset in a position to challenge higher resistance levels after months of sideways movement.

After climbing to a month high of $90.3 on April 17, Solana ( $SOL ) price fell nearly 8% to $83 amid profit taking by investors and a broader rotation away from risk assets amid concerns over stalled U.S.-Iran peace negotiations and rising oil prices. The 7th largest token has fallen nearly 33% so far since the beginning of this year.

Despite this significant drop, its charts have now flashed a bullish signal for the medium term.

On the daily chart, Solana price has broken out of a multi-year descending parallel channel from mid-September last year. A breakout from such a pattern has historically led to a shift in market sentiment from bears back to bulls.

In Solana’s case, the breakout positions Solana for a steady upside in the coming weeks with a potential rally to as high as $155, a level calculated by adding the height of the channel to the point of breakout.

However, other technical indicators suggest some caution ahead of the next leg higher. Notably, the supertrend has flipped red, which means the immediate short-term trend remains under selling pressure.

At the same time, the MACD lines have formed a bearish crossover, which has often been the precursor to further consolidation before a sustained move upward.

Meanwhile, a major bullish catalyst for the ecosystem is that Solana Company recently raised $8 million through a share sale to global institutional investors like Mirae Asset and HashKey Capital.

The development allows the digital asset treasury to significantly expand its holdings by purchasing additional SOL tokens directly from the market, providing a solid foundation of institutional demand.

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