Solana (SOL) has recently shown impressive volatility and price movement in the cryptocurrency market. Solana experienced a mix of upward thrusts and pullbacks, indicating a turbulent yet opportunistic market scenario for investors. Even though it faced off against a $190.0 resistance level stubbornly SOL remained resilient enough to stage a potential recovery. In this article, we take an in-depth look at what happened with Solana’s value and some key technical indicators that might shape its future course over a short-term period.
Between July 25 and 29, there was an impressive rally by Solana which made its price go up by about 16% reaching the highest point for four months - $193.92.. This upward surge however encountered strong headwinds around the $190 mark hence forcing it to correct down by 8% to trade slightly below $179.
Attractive though it may seem SOL is on its way to finish July with a 23.5% gain despite the recent pullback. Currently, trading sees Solana only slightly higher than where it closed on Friday i.e., +0.88% at around $181.13 per coin traded. The trajectory of prices for Solana has shown that near important resistance levels there are high chances of getting corrections back downwards again happening sooner rather than later. One significant area worth keeping tabs on is the weekly resistance of about $184.74 if crossed then the next target would be the daily high of April 1 at $204.
The awesome oscillator AO on the SOL/USD daily chart reads +26.29, suggesting bullish momentum is building but red bars show this strength may exhaust into resistance areas; RSI is at 63.42 showing room for further upward movement depending on what happens in the markets.
This setup tells us that Solana is at a make-or-break point. If it breaks above the recent resistance and flips $184.74 into support, then there could be more upside potential with previous highs being retested or even heading towards $200. Conversely, if this level does not hold as support expect the price to drop toward the next strong one at $165.42 which also coincides with the prior breakout point – looking back in time gives us an understanding of how critical these levels are likely to be viewed by traders seeking long entry areas..
Solana’s recent market performance is overshadowed by concerns regarding its on-chain activity and network governance. According to data from DefiLlama, the total value locked (TVL) on Solana has stagnated at around 30.5 million SOL over the last two weeks after reaching a peak of 32.1 million SOL on July 5 marking the highest since October 2022.
This flat-lining of TVL has also been mirrored across other competing chains such as Ethereum and BNB Chain. Furthermore, the fact that only a few validators have the most power within the network poses threats against decentralization and security thus potentially affecting investors’ outlooks toward the long-term viability of the platform's overall stability.
Yet, there has been a rise in the number of daily active addresses on Solana's blockchain. This indicates that more people are using the technology behind cryptocurrencies like SOL. When demand for tokens goes up, so does their price; therefore, an uptick in blockchains usually leads to higher values of digital coins. These metrics on the chain act as important indicators for evaluating the network’s power and often come before prices increase.