Solana Is Retesting Support After Breakout, Here’s Why a 2x–3x Move Is on the Table

SOL retests prior resistance as support, mimicking its 2023 setup before a 5x rally.

A $159 breakout could trigger a $149M short squeeze, adding strong upside pressure.

On-chain CDD spike and $441M whale move signal rising volatility and active accumulation.

Solana (SOL) remains in a strong uptrend, despite recent market weakness. After a major breakout last month, the asset is now retesting previous resistance as support. This behavior mirrors SOL’s structure in Q3 2023, which preceded a 5x rally. With a larger market cap in 2025, a 2x–3x move appears more realistic for the current cycle.

Technical Structure Suggests Continued Uptrend

According to analysis prepared by Investing Haven, Solana has confirmed a bullish path after holding a key trendline between March and April. The V-shaped recovery pattern seen on the weekly chart indicates strong buyer interest after the April dip

Source: InvestingHaven(X)

While SOL is facing resistance between $179 and $203, it continues to respect double support zones near $150. Recent market data from TradingView shows SOL is trading at $151.88, consolidating near the 34-day EMA

The RSI remains neutral around 48.7, while the MACD has shown a bearish crossover. Despite this, the Awesome Oscillator is showing green histogram bars, indicating early bullish divergence. Analysts believe a close above $165 could pave the way for a retest of $180.

Short Squeeze and On-Chain Activity Support Further Gains

According to Coinglass, $149 million worth of short positions could be liquidated if SOL climbs just 2% to $159. This setup could trigger a short squeeze, which often results in rapid upward price movement

The last short squeeze in late 2023 led to a strong rally. On-chain data from Glassnode shows a spike in Coin Days Destroyed (CDD) to 3.55 billion on June 3, suggesting that long-held SOL tokens are being moved

This was followed by a $441 million whale transfer to exchanges, adding volatility. Still, buying activity remains strong in SOL/ETH pairs, with $230 million traded in one day, showing that traders are positioning for another move up.

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