Solana's price has shown a sustained increase throughout August, holding above key support levels. Analysts point to the potential for further rally towards $360 if buyers defend the $185–$188 range.
Solana Price Structure and Key Support Levels
Since April, Solana's price has formed an ascending triangle, characterized by higher lows and resistance clustered near $210.
Ascending triangles are generally viewed as continuation patterns, signaling that an established trend may resume if resistance breaks. Chart data showed support zones around $178, $151, and $139.
The recent rally began near $175 in early August, with the token climbing above $200 by mid-month and briefly pushing over $210. A pullback then brought the price below $190 before recovering to its current range.
Derivatives Data Supports Bullish Outlook
Derivatives activity reinforced the bullish setup. Data shows that open interest has steadily increased since December, tracking the broader price trend.
Open interest reflects the number of unsettled futures contracts, and rising levels can indicate greater market participation. In July, when Solana's price approached $250, open interest remained near record highs.
Short liquidations provided another tailwind. A surge to $209 triggered more than $30 million in liquidations within one day. These occur when traders betting against the market are forced to exit positions, which adds buying pressure and reduces selling force.
This often creates a brief window where upward momentum accelerates, as seen during the recent move. The forced closure of bearish positions also removed a layer of resistance that capped prior rallies.
ETF Progress Could Strengthen Momentum
Beyond technical factors, developments surrounding exchange-traded funds (ETFs) add another layer to the current market outlook. Reports indicate that Solana-linked ETFs are advancing toward regulatory approval.
If confirmed, such products could attract institutional flows, similar to what occurred with Bitcoin and Ethereum ETFs. Analysts noted that institutional demand through ETFs could provide deeper liquidity and reinforce market stability.
Combined with the current technical setup, this backdrop supports the view that Solana could extend its uptrend once resistance is broken.
Current analysis indicates that if the $185–$188 support range holds, confidence in the bullish trend will increase. A move above the $215–$220 area could validate a continuation pattern, with targets between $230 and $250, bringing the $360 objective into focus.
