Date: Mon, May 19, 2025 | 12:05 PM GMT
After mounting a solid comeback in recent weeks—where the price of Ethereum (ETH) surged to a high of $2700—the crypto market has hit a patch of high volatility. ETH has slipped back near $2400, dropping over 4% in the past 24 hours. This weakness is rippling through major altcoins .
Solana (SOL), which had posted a monthly gain of over 16%, is also facing downward pressure. But now, this pullback could turn into a bullish opportunity, as SOL appears to be retesting a key breakout level — potentially setting up for its next leg higher.
Source: Coinmarketcap
Retesting Inverse Head and Shoulders Breakout
A closer look at the SOL daily chart reveals a classic inverse head and shoulders pattern — a strong bullish reversal formation that often signals the end of a downtrend and the start of a new upward move.
Earlier this month, SOL confirmed this pattern by breaking out above the neckline resistance around $162, after bouncing from the right shoulder near $141.43. This breakout carried the price up to a local high of $184.
Solana (SOL) Daily Chart/Coinsprobe (Source: Tradingview)
But the rally was short-lived. SOL has since corrected more than 12%, and is now pulling back to retest the neckline zone ($158–$164) — which previously acted as resistance and could now flip into strong support.
What’s Next for SOL?
The $158–$164 area is the level to watch closely. If SOL holds above it and bounces, it would confirm a successful retest of the bullish breakout, opening the door for a move toward the measured technical target of $228 — around 41% higher than the current price.
However, if support fails and price dips further, SOL could slide back toward its 100-day moving average (~$146), which acted as dynamic support in recent months.
At the same time, ETH’s behavior at the current $2400 level will play a key role — and it still appears bearish at the moment. If Ethereum continues to decline, it may drag the broader altcoin market with it. However, a rebound in ETH could spark renewed confidence across the crypto space, especially among Layer 1s like Solana (SOL), which often moves in strong correlation with broader market sentiment.
If ETH can reclaim higher levels, the altcoin rally could resume, helping SOL reclaim its bullish momentum.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
