- Analyst Ali_charts points at $222 as a magnet after the $211 ceiling is breached.
- The $205-$213 range has now become a vital resistance wall that caps further momentum.
- The altseason index at 57 signals moderate altcoin strength, offering potential support for SOL.
Crypto market analyst Ali_charts has set the spotlight on Solana (SOL), projecting that the token could rally towards $222 should it manage to break above the $211 resistance. In a chart on X, the analyst labelled the level a magnet that could attract the momentum as soon as the ceiling of $211 is broken.
Recent trading shows why this level matters. Solana has tested the $211 zone several times, but has been repelled back each time, making it a critical point of contention between bulls and bears. The token now moves within a tight range, holding support near $201 and resistance at $211, with pressure steadily building for the next big move.
Nevertheless, the overall structure points to growing optimism despite the pullbacks. Solana goes on to cement its status as one of the leading altcoins by market value, maintaining investors’ focus in an already turbulent market cycle. A breakout in this area could potentially signal the start of a strong upward leg, characterized by greater market momentum.
However, a burning question remains in the minds of traders and investors alike: Will Solana finally break the $211 resistance and move to the next level of $222, or will another rejection await around the corner?
SOL’s Price Outlook: Institutional Boost Meets Resistance
August has been a defining month for Solana (SOL), marked by high institutional interest and regulatory advances. The token appreciated by over 8% this month, with a sharper 13% gain on the weekly chart. These returns confirm the importance of institutional action in defining Solana’s market path.
The month started with OSL Hong Kong being given the go-ahead to introduce retail trading of Solana on August 11. The news broadened SOL coverage in Asia and caused a surge of over 20%, bringing the token’s price from lows of $173 to highs of around $209.
Shortly after, on August 14, momentum was tested when the U.S. Securities and Exchange Commission delayed its decision on Solana ETF proposals. The move erased 11% of gains, but the setback proved short-lived.
Fresh institutional demand quickly shifted sentiment. On August 15, DeFi Development Corp purchased 110,000 SOL valued at $21 million. Days later, on August 19, Sol Treasury Corp boosted its position to 14,905 SOL worth $2.5 million.
These moves restored market optimism and propelled SOL toward a peak of $213, marking another 20% rally. Yet caution surrounds the rally. Solana has traced an ascending wedge pattern — a setup often linked to potential reversals.
After bumping up against the wedge upper boundary, the token lost more than 6%, slipping away from $213 down to $200. The resistance zone between $205 and $213 has become a wall that bulls must clear for momentum to continue.
Even so, optimism lingers. The 50% Fibonacci retracement level at around $195 is emerging as a short-term support line. Assuming it does offer support, analysts reckon that SOL may attempt another breakout. Broader market indicators provide further weight to this opinion, with the altseason index at 57, indicating a consistent level of strength in alternative cryptocurrencies.
Related: Solana’s 107K TPS Benchmark Raises Doubts on Network Capacity
Strong On-Chain Trends Put Solana in Focus
On-chain data also reflects impressive resilience, as the OI-weighted funding rate has been steadfastly positive since early August. At 0.0092%, the rate has shown a streak of bullish confidence over the past month, with traders ready to pay a premium to hold their long positions.
That belief is also reflected in Solana’s open interest, which has hit a new record of $12.90 billion today. The gradual rise indicates high investor confidence and a clear preference to hold positions rather than sell them, which means they believe in the token’s further upward potential.
However, the data shows that there is brewing tension in the market. A large number of short liquidations is accumulating, with a massive cluster building up at $222, amounting to $734.01 million. The most notable pocket is around $205, where a total of over $239 million in possible liquidations is piled.
Analysts caution that any break above these levels may force a short squeeze, in which short sellers are forced to cover their positions quickly, leading Solana to even higher price levels with accelerated momentum.
With optimism on the rise and leverage accumulating, Solana’s chart indicates that a critical move is imminent. The actual test of Solana is not whether it can break above the $222 level, but whether it becomes resistance or the launching pad of another leg up.
Conclusion
Solana continues to stare at the $222 level as the next major stepping stone in its market performance. Institutional strength, robust on-chain indicators, and increasing open interest have added to the optimism, whereas technical charts demonstrate both opportunity and precaution. The $222 level is no longer about whether it will be achieved, but whether it will serve as resistance to limit the rally or as support for the next breakout of Solana.
