SOL Price Analysis: Is Solana Finally Bulish Again?

2025-06-04

Solana (SOL), a high-speed Layer 1 blockchain often compared with Ethereum, is once again in the spotlight this time, for all the right reasons.

Following weeks of market volatility and a broader bearish crypto sentiment, Solana has found a catalyst for recovery: a groundbreaking partnership with Dubai’s Virtual Assets Regulatory Authority (VARA).

This article dissects the technical and fundamental signals behind SOL’s latest momentum, explores its short-term price trajectory, and places its bullish narrative in the broader macroeconomic context.

SOL Price Today – Market Overview

At press time, Solana (SOL) trades at approximately $160, up 4% from its recent local low near $150. This rebound contrasts with a generally sluggish altcoin market. Notably, Solana's price increase came right after the announcement of a regulatory partnership, an indicator that fundamentals are starting to dictate technicals.

On the 12-hour chart, a completed TD Sequential red-nine setup has appeared, a classic reversal signal that often precedes short-term uptrends. Additionally, Liveliness, an on-chain indicator that compares holding vs. spending behavior, has dropped to 0.76, its lowest in two weeks signaling increased investor conviction and long-term holding patterns.

This blend of technical affirmation and real-world partnerships provides a multi-dimensional case for cautious optimism.

Key Factors Driving Solana’s Price Momentum

MOU with VARA (Dubai)
Solana Foundation has entered a regulatory collaboration with Dubai’s Virtual Assets Regulatory Authority, signaling the project's alignment with international policy and ecosystem growth.
Solana Economic Zone Plans
A new initiative will focus on building a regulatory sandbox, economic infrastructure, and developer support system within Dubai to incubate Solana-native projects.
Technical Reversal Signal
The TD Sequential indicator triggered a bullish signal on the 12-hour timeframe, hinting at the end of recent selling pressure.
Investor Holding Behavior
On-chain metrics reflect low liveliness, showing a shift toward long-term holding, often a precursor to sustained upward movement.
Analyst Sentiment Turning Bullish
Crypto strategist Satoshi Flipper forecasts SOL could reclaim $200, citing strong support zones and a clear upward channel on the chart.

How the Solana-VARA Deal Changes the Game

This isn't just another MOU announcement, it’s a strategic alignment between Web3 infrastructure and real-world governance. VARA, as Dubai’s regulatory vanguard for crypto innovation, provides a fertile and progressive landscape for blockchain deployment. The Solana Foundation plans to introduce:

Regulatory Workshops – for developers and investors to understand evolving legal landscapes
Talent Acceleration Programs – to onboard technical experts from the MENA region
Advisory and Economic Services – to assist Solana-native startups navigating compliance and fundraising

By positioning Solana as an early mover in Dubai’s regulatory ecosystem, this MOU sets a precedent. It may not just boost the token’s price, it could potentially redefine where and how the next wave of dApps is born.

SOL Price Prediction – June 4, 2025

a) Price Prediction Range

With bullish signals in play, SOL may range between $158–$175 in the short term. A decisive breach above $175 could open the path toward $185–$200, especially if volume and sentiment continue aligning.

b) Factors Affecting Price Outlook

Momentum from the VARA partnership
Bullish TD Sequential and ascending channel pattern
Increased developer engagement from MENA region
Liveliness decline, implying decreased sell-side pressure
Macro recovery from last week's crypto dip

c) Support and Resistance Levels

Support: $150 – recent local bottom and psychological zone
Resistance: $175 (mid-level resistance), followed by $200 (upper channel boundary)

On-Chain Sentiment: Signs of Maturing Conviction

Metrics from Glassnode reveal that long-term holders are dominating activity on the Solana network. The significant drop in Liveliness currently at 0.76 means that coins are largely being parked, not traded.

This trend is common during accumulation phases, especially when early market participants foresee a bullish move and choose to front-run retail cycles. When supply tightens due to reduced circulation, price tends to react sharply to demand spikes often resulting in outsized bullish breakouts.

Solana’s Macro Context: Positioned for a Global Blockchain Shift

Solana’s alignment with Dubai’s VARA isn’t just a localized move, it's part of a larger narrative. Countries in the Middle East are accelerating toward crypto-regulatory innovation, and platforms that integrate early with these efforts stand to gain disproportionately.

Moreover, the blockchain infrastructure race is intensifying. Ethereum is still battling high fees, while other Layer 1s struggle with developer traction. Solana; fast, scalable, and now globally regulated is building what might become a hybrid financial backbone between traditional fintech and decentralized protocols.

In this sense, SOL is not just bouncing, it is strategically pivoting into the center of a broader transformation.

Conclusion

Solana appears to be in the early stages of a bullish reaccumulation phase, catalyzed by its high-level partnership with Dubai’s crypto regulator, VARA. With key technical indicators turning positive and on-chain metrics confirming investor confidence, the case for upward momentum is increasingly compelling.

Still, market conditions remain sensitive. Investors should monitor support levels around $150 and evaluate momentum around $175–$200 before considering entries.

Always do your own research and visit Bitrue for real-time market tools before making any crypto investment decisions.

FAQ

Q: What is the current price of SOL?
A: SOL is trading near $160, having rebounded 4% from its recent dip.

Q: Why did Solana’s price rise recently?
A: The price rise was driven by a strategic MOU with Dubai’s VARA, signaling increased regulatory clarity and developer ecosystem growth.

Q: What is the Solana price prediction for this week?
A: Analysts expect a range of $158–$175, with potential to reach $200 if bullish momentum sustains.

Q: Is Solana still worth buying in 2025?
A: With increasing institutional alignment, positive technical signals, and growing developer adoption, Solana remains one of the most structurally sound altcoins. Still, always DYOR—and Bitrue is a great place to start.

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.

Solana-SOL

Disclaimer: The content of this article does not constitute financial or investment advice.

Join Bitrue for exclusive rewards