Solana price breaks 5-week downtrend, is $83 next?

Solana price rallied nearly 7% from its Aug. 7 low, breaking a five-week descending channel as proposed supply changes and institutional adoption renewed demand for SOL. Summary Solana price rose from $72.49 to $77.36, breaking above a five-week descending channel. 4-hour Supertrend support flipped bullish at $75.02, strengthening the breakout structure. Liquidation clusters at $78 and $80 could accelerate gains if buyers maintain control. Daily momentum remains mixed, leaving $74–$75 as the main breakout invalidation zone. Solana price breaks its five-week downtrend According to data from crypto.news, Solana (SOL) price traded around $76.93 on Aug. 10, up nearly 7% from its Aug. 7 low of $72.49. The recovery pushed SOL through the upper boundary of a descending channel that had controlled its price since early July. The 4-hour chart shows that SOL first reclaimed $74.30 before breaking the channel near $75. The price then climbed to an intraday high of $77.36, where buyers encountered initial resistance. Solana price 4-hour chart — Aug. 10 | Source: crypto.newsTrading volume expanded during the breakout, while the bull-bear power indicator rose to 1.23. A positive reading indicates that buyers currently have more short-term control than sellers. The Supertrend indicator has also flipped below the market and now provides dynamic support at $75.02. Holding above this level would keep the 4-hour structure bullish and could turn the former channel resistance into support. Crypto analyst Dami-Defi identified the same structural change in an Aug. 10 post on X. “SOL just broke a five-week downtrend,” the analyst said. The breakout does not yet confirm a broader trend reversal, however. SOL remains well below its May swing high near $97 and its January peak above $145. You might also like: Rarible launches on Solana with Claynosaurz NFTs What is driving the SOL recovery? The rally coincided with growing validator support for two proposals designed to reduce Solana’s future supply growth. SIMD-0550 would increase the annual disinflation rate from 15% to 30%, bringing the network toward its terminal inflation rate faster. SIMD-0553 would introduce resource-based transaction fees and could raise daily SOL burns from about 650 tokens to between 7,500 and 9,000. The formal governance process is expected to run through Aug. 18. The proposals remain subject to validator approval, meaning their projected supply effects are not guaranteed. Solana’s governance forum describes SIMD-0550 as a doubling of the pace at which inflation declines. Institutional developments have added another source of demand. BlackRock recently unveiled its Daily Reinvestment Stablecoin Reserve Vehicle, which can record fund ownership across several public blockchains, including Solana. The product holds cash, short-term U.S. Treasuries and repurchase agreements rather than SOL itself. Western Union has also expanded its use of the network.