Solana Holds Monthly Support As Network Activity Grows – Time For A Breakout?
Solana faced greater volatility yesterday, falling 7% after the Federal Reserve announced a 25 basis point rate cut and expected smaller rate cuts in 2024. Despite the sell-off, Solana’s price action remains resilient as it managed to stay above key support levels. Enhance confidence in its ability to withstand macroeconomic changes.
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While the market reacted to the Fed’s caution, Solana’s on-chain indicators told a more optimistic story. The number of daily transactions on the Solana network has surged to nearly 67 million, reflecting growing adoption and continued network activity. This strong transaction volume highlights Solana’s position as a leading blockchain platform, one that developers and users continue to rely on for its scalability and efficiency.
Staying above key support, analysts say Can bring a strong rebound to SOLespecially if broader market conditions stabilize. This bullish outlook is fueled by increased on-chain activity, indicating that long-term fundamentals remain intact.
Solana holds critical demand
Solana has shown resilience in the face of market turmoil, remaining above key demand levels around $210 following yesterday’s sell-off triggered by the Fed’s policy announcement. This key support level reinforces bullish sentiment towards the asset, with many analysts expecting a breakout soon.
Top analyst Jelle recently provided compelling Technical Analysis of XPoint out that Solana managed to trade off the lows, maintaining its position above monthly and weekly support, and continues to trade within a falling wedge pattern. According to Jelle, this setup suggests a breakout is imminent, with Solana targeting a new all-time high soon.
On-chain metrics paint a promising picture for Solana’s network activity, supporting this optimistic outlook. Ali Martinez shares stats Showing that the Solana network has nearly 67 million daily transactions, highlighting strong adoption and user engagement. This increase in network activity highlights Solana’s utility and strengthens the basis for continued price growth.
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If Solana holds above $210 in the coming days, it could trigger a sharp rebound as bullish momentum builds. Traders and investors are closely watching the asset’s price action for signs of a decisive move, with a combination of strong technical and on-chain indicators suggesting the asset could surge to new highs.
Price Action: Liquidity higher than expected
Solana is trading at $210, and despite market volatility, the price has held at this key level for several days. This price point indicates strong demand, but simply holding this level won’t trigger the next rally. A decisive break above $240 is crucial for Solana to regain bullish momentum. Such a move would signal new strength and pave the way for higher price targets.
The key intermediate step lies at the $225 mark. If Solana can retake this level with conviction, it could confirm the bullish trend and set the stage for further upward momentum. This could attract more buying interest as traders and investors view the move as a sign of strength.
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However, a failure to break out of these resistance levels could keep Solana range-bound and limit its ability to capitalize on recently established support levels. As market conditions continue to evolve, Solana’s ability to break through these key thresholds will determine whether it transitions to a stronger upward trajectory or remains stuck in consolidation.
Featured image from Dall-E, chart from TradingView
