Solana (SOL) Price: Traders Eye $180 Target After Inverse Head and Shoulders Forms

TLDR:

Table of Contents

A crypto whale unstaked 120,197 SOL worth $17.55M and moved it to Binance, potentially signaling selling pressure
Solana has rallied 45% in the last 30 days, breaking out of a falling channel
SOL is consolidating between $143.5 and $154 after holding its key support level at $143.5
China announced a $138 billion liquidity injection which could positively impact crypto markets
The FOMC meeting outcome could trigger further volatility in SOL prices

Solana has been making waves in the crypto market with both bullish technical setups and concerning whale movements. Recent price action shows SOL holding key support levels while forming patterns that could signal further upside potential, even as a major holder moves millions to exchanges.

On May 6, Solana briefly dipped below its critical $143.5 support level but quickly recovered thanks to Bitcoin’s 3% surge that lifted the broader market.

At the time of writing, SOL trades around $147.50, up 2.75% with an intraday high of $149.50.

The recovery attracted considerable attention, with SOL’s trading volume increasing by 40% in the past 24 hours.

A development catching traders’ attention was a major whale movement. According to Onchain Lens, a whale unstaked 120,197 SOL valued at $17.55 million and transferred these funds to Binance exchange.

A whale has completely unstaked 120,197 $SOL worth $17.55M and sent it to #Binance after 6 months of staking.
Overall, the whale has staked 120K $SOL ($25.36M) and earned 3,802 $SOL as a reward, yet it faced a loss of $7.8M.https://t.co/BM75ThvsBY pic.twitter.com/OU6uMwruD2
— Onchain Lens (@OnchainLens) May 7, 2025

This substantial amount had been locked for six months, during which the whale earned 3,802 SOL in rewards but still faced a loss of $7.8 million.

Technical Analysis Points to Potential Breakout

The transfer to Binance might indicate selling intentions, which could slow SOL’s upward momentum in the short term by creating selling pressure.

From a technical perspective, SOL has been consolidating in a range between $143.5 and $154 for about two weeks after breaking above the $143 resistance level.

This sideways movement following a breakout is typically considered bullish, often indicating strength as the asset consolidates before its next move.

If SOL manages to break above $154, a 15% rally might follow, potentially pushing prices toward the $180 mark.

However, should prices drop below $143.5, SOL could fall to $132 in the short term. Some analysts point to $120 as the strongest historical support level for SOL, which has triggered price reversals during previous market downturns.

SOL has shown impressive strength recently, climbing 45% over the past 30 days. The price broke out of a falling channel that had constrained it between late January and early April, during which SOL fell from $256 to $106.

Technical analysts have also identified an inverse head and shoulders pattern on SOL’s daily chart, which is considered a bullish reversal signal. The pattern completed when SOL surged above the neckline at $123.49.

Global Economic Factors at Play

Global economic factors could influence SOL’s next move. China’s central bank announced a cut to its reserve requirement ratio, preparing to inject 1 trillion yuan (approximately $138 billion) in liquidity into the economy.

The U.S. Federal Reserve’s FOMC meeting is another critical factor. While market expectations suggest a 97% likelihood that the Fed will maintain current interest rates, a surprise rate cut could trigger a surge toward $200 for SOL.

The Relative Strength Index (RSI) has moved above the neutral line on the 4-hour chart, indicating bullish momentum. Similarly, the Chaikin Money Flow (CMF) broke above the zero signal line, showing rising buying pressure in the short term.

If these technical indicators hold, SOL could break resistance at $152.53 and rally toward $187.80 at the 0.382 Fibonacci level.

For those watching the market, the $120 level remains a key “buy-the-dip” opportunity should prices retrace. With current market conditions and technical setup, SOL appears poised for its next move as traders closely monitor whale activities and broader market influences.

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