Solana (SOL) Recovers 10% After Cup-and-Handle Breakout

Solana (SOL) is currently trading around $173, showing signs of recovery after a recent dip below $170. This movement follows a sharp breakout earlier in the week, where a cup-and-handle formation on the 4-hour chart triggered a rally from $145 to above $180. However, since reaching a local high near $184, the asset has experienced increased volatility, with bulls struggling to maintain control amidst minor intraday pullbacks.

This price behavior indicates that while the broader trend remains bullish, short-term traders are locking in profits near key resistance zones. On the 4-hour chart, SOL confirmed a bullish breakout from the cup-and-handle pattern, with the handle forming a descending channel that resolved upward. This breakout pushed the Solana price above $180 but encountered supply pressure near previous daily highs. The price is now consolidating above the channel’s upper boundary, which has flipped to support around $167–$170.

The daily chart also shows SOL retesting a significant resistance-turned-support zone at $168–$170, coinciding with the neckline of the multi-week base formation. Technical indicators show mixed momentum. The 4-hour RSI is currently at 57.49, recovering after dipping near the neutral 50 mark, indicating that buyers are regaining momentum but not yet in overbought territory. Meanwhile, the MACD on the 30-minute chart has just printed a bullish crossover, albeit with limited separation, suggesting modest upward momentum in the short term.

Bollinger Bands on the 4-hour timeframe are starting to squeeze, suggesting an incoming volatility expansion. With the price holding above the 20-EMA ($173.53), the short-term bias remains cautiously bullish as long as it stays above this dynamic support. Immediate support is seen at $168 and $165, both aligning with the top of the handle formation and recent swing lows. Below that, the next major demand zone lies near $153–$155, as indicated by the lower Bollinger Band and the 200-EMA.

On the upside, resistance lies near $175 (Bollinger Band midpoint), followed by $180–$184, which capped the recent Solana price spikes. A breakout above this range would likely open the door toward $192 and potentially $200, especially if volume confirms the move. The Solana price is pushing higher primarily due to a strong bullish breakout from a technical consolidation pattern. Traders have responded positively to the break above $150 and the successful retest of $167. Moreover, the broader crypto market sentiment has remained constructive, offering tailwinds to SOL’s upside push.

The question now is whether SOL can build a sustained move above $175 or if it will face renewed rejection at overhead resistance. For May 17, the Solana price action is expected to remain range-bound between $167 and $175 as bulls attempt to hold recent gains. A clean break above $175 would shift the short-term structure firmly bullish and encourage retests of $184 and $190. On the flip side, failure to hold $167 could pull SOL back toward the $153–$155 demand zone. Given the bullish chart structures, improving RSI, and fresh MACD crossovers, the odds marginally favor bulls—provided $167 support continues to hold.