Solana (SOL) Surges 8% This Week—Here’s Why the Rally Might Just Be Warming Up

Solana's SOL token isn't just bouncing—it's breaking patterns. An 8% weekly gain signals growing institutional interest as Ethereum's gas fees push developers toward cheaper, faster alternatives.

The 'ETH killer' narrative gets fresh ammo

While Bitcoin maximalists obsess over store-of-value, SOL's 50% QTD surge proves smart money cares about utility. Layer 1 blockchains eating Ethereum's lunch? Cue the 'decentralization theater' eye-roll from crypto purists.

Technical breakout or bull trap?

SOL smashed through resistance at $150 like a meme coin through retail portfolios. With RSI hovering at 68, traders debate whether this is FOMO fuel or sustainable momentum. Meanwhile, Wall Street still can't tell the difference between Solana and Salvador Dalí.

The closer: This rally smells like more than just altseason leftovers. But in crypto, even 'fundamentals' need a reality check—remember when Terra's algorithm was 'bulletproof'?

TLDR

• Solana rallied 8% this week with analysts predicting larger gains if Ethereum leads broader altcoin rotation
• Daily token launches hit 2-month high with over 53,000 new tokens created on July 16
• $15 million in short liquidations triggered as SOL broke through $174 resistance level
• Technical analysis points to potential $280 target following bullish flag pattern formation
• Galaxy Digital purchased $55 million worth of SOL despite some profit-taking activity

Solana has gained 8% this week, breaking above key resistance levels and triggering a wave of Optimism among traders and analysts. The move comes as crypto insights platform Swissblock issued a bullish rating for SOL, citing historical patterns where Ethereum rallies precede Solana surges.

The analytics firm noted that rotation dynamics are beginning to favor altcoins. “When ETH leads, SOL accelerates. The rotation is setting up to be strong,” Swissblock stated in their analysis.

Historical data shows SOL experienced impulsive rallies in early and late 2024, each followed by ethereum upticks. A similar pattern has emerged in July, raising expectations for another surge if past trends repeat.

Bitcoin dominance has dropped from 66% to 62.4% since late June, supporting the building altcoin season momentum. This shift away from Bitcoin creates favorable conditions for alternative cryptocurrencies like Solana.

Based on altcoin market cap analysis, Swissblock suggests the market could be entering ‘Wave 5’, historically the most explosive phase for the sector. However, they also warn this surge could mark the cycle peak.

Network Activity Surges

Developer activity on the solana network has shown strong growth recently. According to SolanaFloor data, daily token launches reached a two-month high on July 16, with over 53,000 new tokens created in a single day.

🚨NEW: Daily tokens launched on @solana have surged to a 2-month high in the last 24 hours. pic.twitter.com/SWfEGPNpxh

— SolanaFloor (@SolanaFloor) July 17, 2025

This surge in token creation indicates renewed developer interest and network activity. When new projects flood blockchain networks, it typically boosts demand, increases gas activity, and drives higher user engagement.

The price action has been equally impressive. SOL broke through resistance NEAR $174, reaching its highest level in over a month. This breakout triggered over $15 million in short liquidations as bears were forced to exit positions.

The rally was accompanied by a strong volume spike and a clear break above the 25-day and 99-day moving averages. Both technical indicators had previously capped price action, making the break particularly meaningful.

Technical Analysis Points Higher

Analyst Satoshi Flipper identifies a bullish flag pattern forming on SOL charts. After breaking out of a prolonged falling wedge earlier this year, the cryptocurrency has carved out this new formation.

$SOL/usdt DAILY

FIRST: $190
NEXT: $280 (prev ATH)
LAST: PRICE DISCOVERY

Easy Peasy ⚡️⚡️ https://t.co/vDAgFmY4ML pic.twitter.com/qmL4HYVNZH

— Satoshi Flipper (@SatoshiFlipper) July 17, 2025

The next technical checkpoint sits at $190 resistance, which has served as a major pivot in previous cycles. A clean break above this level could trigger a measured MOVE toward the $280 region.

This target area aligns closely with Solana’s previous all-time high, making it a logical resistance zone. If price reclaims $190 with strong volume, the upper target becomes more achievable.

The meme community has also rallied behind Solana, with some eyeing a $300 breakout target. According to CryptoCurb, such a move could trigger a broad rally across Solana-based altcoins and memecoins.

Institutional Interest Remains Strong

Despite some profit-taking activity, institutional players remain bullish on SOL’s prospects. Galaxy Digital recently purchased $55 million worth of SOL tokens, demonstrating continued institutional confidence.

Glassnode data shows profit-taking averaged $400 million per day during this week’s rally. However, this remains relatively low compared to the $1-2.4 billion profitability levels that marked 2024 local peaks.

The SOL/ETH ratio tells a different story, having dropped 44% since April. This suggests the market has favored Ethereum over Solana in recent months, though historical patterns indicate this could reverse.

If Ethereum continues its current momentum, it may provide the catalyst needed for SOL to extend its recovery above $180. The combination of technical breakouts, increased network activity, and institutional buying creates a favorable backdrop for continued gains.

Current price action shows SOL holding above key moving averages with momentum building across multiple timeframes.