Solana (SOL) Price Prediction: Is SOL Gearing Up For A Breakout Or Breakdown?

The Solana price was one of the few highlights in a generally choppy crypto market over the past week.

The Solana price was one of the few bright spots in an otherwise dull crypto market over the past week. While most large-cap assets were stuck in a consolidation range during the last seven-day period, the SOL token enjoyed a decent amount of upward bullish momentum.

The price of SOL kicked off the weekend with a strong rally toward the $140 level, although it faced some resistance around this point. However, the latest on-chain data suggests that the Solana price might have become wedged between two crucial levels.

Is The SOL Price Setting Up For A Breakout Or Breakdown?

In a recent post on X, prominent crypto analyst Ali Martinez shared an on-chain insight into the current Solana price setup and its potential future trajectory. The online pundit referenced the “UTXO Realized Price Distribution” (URPD) indicator, which measures the amount of a specific cryptocurrency that was acquired at a given level.

Usually, the ability of a price level to serve as an on-chain support or resistance zone depends on the number of investors (and coins) with their cost basis around this level. The cost basis of an investor is the price at which they bought their tokens or coins.

Typically, a price region (below the current price) where several investors bought their tokens is likely to act as a support level. This is because investors are likely to double down on their position when an asset's value falls to their cost basis, and this buying activity helps keep the token's price afloat.

On the other hand, price levels above the current price with significant buying activity would serve as major supply or resistance barriers. The rationale behind this is that investors tend to sell off their assets when the token's price rises back to their cost basis, putting downward pressure on price and preventing further upward growth.

The chart below shows the distribution of token supply at different Solana price levels surrounding the current price.

According to data from Glassnode, the most important support for the Solana price lies around $129, while the major resistance sits at around $144. As Martinez explained, a breakout (above $144) or breakdown (below $129) could determine the fate of the SOL token over the next few weeks.

As observed in the highlighted chart, the next significant support for the Solana price sits around the $10 level. Meanwhile, there is no significant resistance for the altcoin until around the $170 price level based on the URPD indicator.

Solana Price At A Glance

At the time of writing, the SOL token is trading at around $138, reflecting an over 3% price increase in the past 24 hours.