Solana Stalls at $171: Can the Rally Reignite or Is the Bull Run Over?

Solana hits a wall at $171 as buying pressure evaporates—traders left wondering if this is a healthy pullback or the start of a deeper correction.

### The Momentum Meltdown

Once the darling of the altcoin rally, SOL's chart now looks like a caffeine crash after an all-nighter. The $171 resistance level has become a brick wall, with volume drying up faster than a meme coin's utility.

### Institutional Whispers vs. Retail Panic

While some hedge funds quietly accumulate at these levels, retail traders are dumping bags like they're last season's NFT profile pictures. The order book shows more fake liquidity than a stablecoin's '1:1' peg promise.

### The Cynic's Corner

Another day, another crypto 'healthy correction' that smells suspiciously like leveraged longs getting liquidated. But hey—at least the blockchain's still fast, even if the price isn't going anywhere.

Resistance Holds at $171 Despite Intraday Surge

On August 5, solana briefly broke above $171 following a short-term rally that began the evening before. However, the gains were short-lived. Strong selling pressure during the U.S. market hours reversed the momentum, causing SOL to fall back into its earlier range between $160 and $170.

The rejection near $171 reflects a broader pattern observed in Solana’s price action since early 2024. Despite several attempts to push higher, the token has consistently failed to break above the $210–$220 resistance zone. Its last significant breakout was in December 2024, when it briefly surpassed $300. However, that MOVE was quickly reversed, and the price returned to a horizontal range.

Key Technical Zones Still in Play

Looking at the longer-term chart, Solana has been trading within a wide horizontal range since early 2024. Support has repeatedly held around $130, while resistance remains firm near $210. After dipping toward $115 in early 2025, SOL rebounded in March and has been testing higher levels since.

The recent decline has returned the price to a mid-range support zone around $160–$170. A decisive move below this zone could expose the token to the next support at $150. On the upside, SOL must break and hold above $170 to have a chance at retesting $180 or higher.

Volume Up, But Momentum Weakens

One of the more interesting data points is the rise in trading volume. Despite the price falling back to $163, daily trading volume rose over 23%, indicating that investors remain engaged. Solana’s total market capitalization currently stands at $88.47 billion, with 538.41 million tokens in circulation out of a total supply of 606.75 million. The fully diluted valuation (FDV) is estimated at $99.78 billion.

However, the volume spike hasn’t translated into lasting price strength, suggesting that much of the activity could be from short-term traders or profit-taking following the short rally.

RSI and MACD Turn Bearish

Technical indicators paint a cautious picture. The Relative Strength Index (RSI) has dropped to 44.72, below the neutral 50 level. This comes after an RSI peak of around 75 in mid-July, which marked overbought territory and preceded the current downturn.

Meanwhile, the Moving Average Convergence Divergence (MACD) has also turned negative. The MACD line sits at -0.20971, with the signal line at 3.19263—forming a bearish crossover. The MACD histogram is in negative territory at -3.40234, further confirming the downward momentum.

Until the RSI climbs back above 50 and the MACD histogram starts printing green bars, traders are likely to remain cautious.

Outlook: More Downside Unless Key Levels Break

The path forward for Solana will depend largely on whether it can reclaim $170 with strong momentum. A sustained break above that level WOULD be a sign of renewed buyer confidence. However, if SOL continues to struggle below this point, there’s a risk of falling toward the $150 support area.

Short-term traders will be watching for any positive divergence in RSI and MACD, while long-term holders may wait for a firm breakout above $180 to confirm a shift in trend.

Conclusion

Solana’s recent rejection near $171 highlights the token’s ongoing battle with resistance in a sideways trading range. While volume is rising and investor interest remains high, technical indicators suggest weakening momentum in the short term.

With key support around $160 and strong resistance above $170, SOL’s next move could set the tone for the remainder of August. Until then, traders and investors are likely to remain cautious, waiting for a decisive breakout—or breakdown.