Solana Eyes Major Upside After Recent Correction
Solana (SOL) is showing signs of a potential breakout following a recent 24% correction from $188 to a weekly low of $141. As of June 6, the token was trading near $149.52, reflecting mild bearish pressure. However, analysts believe SOL may be forming a higher low — a technical signal that often precedes a trend reversal.
The 50-day simple moving average (SMA) at $161 and the 200-day SMA at $164.19 are critical resistance levels. A clear breakout above the 200-day SMA could confirm bullish momentum, setting the stage for a significant rally.
Technical Targets: $420, $620, and $1,020
According to a technical forecast, Solana could surge to $620 by January 2026, representing a potential 316% increase from current levels. The analysis is based on Fibonacci extension levels:
- 1.618 level: $420
- 2.618 level: $620
- 4.618 level: $1,021
These targets suggest a gradual uptrend supported by market structure and previous cycle behavior. If the $620 target is met, Solana’s market cap could reach around $325 billion, potentially positioning it as the second-largest crypto asset after Bitcoin, assuming limited Ethereum growth.
RSI and Momentum Indicators Support Trend Reversal
The 14-day Relative Strength Index (RSI) is 40.14, indicating mild bearish conditions without breaching the oversold threshold. This further supports the possibility of a trend reversal if buying volume increases and resistance is broken.
ETF Approval Could Drive Price Action
Market attention is also focused on the SEC’s pending decisions on Solana-based spot ETF proposals. Approval odds for 2025 have reportedly surged to over 80%, adding another potential bullish catalyst to SOL’s price action.
Risks and Fundamental Concerns
While the technical outlook remains optimistic, some institutional skepticism exists. A major banking firm warned in May that Solana may become a “one-trick pony,” dominated by memecoin-related activity. SOL’s recent rally has largely been driven by meme coin speculation, raising concerns about long-term sustainability.
Conclusion
A breakout above the 200-day SMA and sustained upward movement could confirm Solana’s path to $420 and $620. Investors are advised to monitor support zones and avoid short positions during potential bullish continuation.
