Solana (SOL) Surges 5%—Here’s What’s Fueling the Rally
Solana’s native token SOL is punching through resistance levels again—up over 5% in 24 hours while legacy finance plays catch-up. Three catalysts driving the move:
1. Institutional inflows: Whale wallets absorbed $28M in SOL derivatives in the past week, per on-chain sleuths.
2. Network activity spikes: Daily active addresses hit 1.2M as NFT traders flee Ethereum’s gas fee circus.
3. Short squeeze: $15M in liquidations as SOL shorts got steamrolled—because betting against degenerate crypto traders always ends well.
With the Solana Breakpoint conference looming, traders are front-running the usual hype cycle. Just don’t mention the 97% drawdown from 2021’s ATH—we’re all pretending that never happened.
$500M to Purchase SOL?
On Wednesday, the company revealed a $500 million convertible note facility secured from New York-based investment firm ATW Partners. The capital will be used exclusively to purchase SOL tokens for staking yield generation
This marks a first-of-its-kind deal in the Solana ecosystem. As per a press release, an initial $20 million disbursement will be received on May 1, with a potential $480 million to follow in tranches.
Interest payments will be made in SOL tokens generated via staking rewards, underlining the long-term conviction in Solana’s ecosystem growth.
“This is the largest financing facility of its kind in the Solana ecosystem and the first ever directly tied to staking yield,” noted SOL Strategies CEO Leah Wald.
The company, already listed on Canada’s CSE and the US-based OTCQX, is also pursuing a Nasdaq listing to scale its reach among institutional investors.
Technical Breakout: The Bullish Ascending Triangle
SOL’s chart reveals a textbook ascending triangle pattern that has been forming since late 2024.
With strong support at $147.48 and a series of higher lows, bulls finally pushed past resistance NEAR $150, indicating a breakout.
According to a prominent crypto market analyst, this pattern is an accumulation structure — a strong bullish signal suggesting sustained demand and upward pressure.
https://twitter.com/DaCryptoGeneral/status/1915418379411771565
If the breakout sustains, SOL could climb toward the next major resistance at $180.63 (1.618 Fibonacci extension), followed by ambitious targets at $232.73 (2.618 Fib) and even $288.51, the top of the triangle pattern.
Should market momentum persist, Solana could even retest the $317 (4.236 Fib) level in the coming months.
Solana Daily Chart | Source: TradingView
On the other hand, the daily RSI sits at 66.46, approaching overbought territory, which signals strong bullish momentum but warns of possible short-term pullbacks.
Meanwhile, the MACD indicator is also flashing green, with the MACD line at 6.15 crossing above the signal line at 2.75, reinforcing the strength of the ongoing rally.
It is also important to note that SOL is well above its key exponential moving averages: the 50-day EMA ($138.37) and the 20-day EMA ($136.70), which now act as critical support levels in case of corrections.
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