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Solana (SOL), a prominent player in the cryptocurrency market, has been experiencing a notable downtrend, struggling to maintain its upward momentum amid volatile market conditions. As of today, Solana's price stands at $139.71, reflecting a 3.56% decline over the past 24 hours, with a trading volume of approximately $2.256 billion.
The cryptocurrency market remains highly susceptible to broader economic influences, and Solana has not been immune to these fluctuations. After a brief rally last weekend that saw Solana approach a resistance level of $164, the asset experienced a significant pullback. This retracement has raised concerns among investors about the sustainability of recent gains, marking a challenging period for Solana as it attempts to regain its footing above the $150 mark.
Solana's current trading price below the psychological threshold of $150 suggests a bearish sentiment among traders. The immediate support level for Solana is identified at $134, a point where buyer interest has previously materialized, suggesting that this level could act as a critical juncture for future price movements. The key resistance is positioned at $164. Overcoming this barrier is crucial for Solana to initiate a new bullish phase, potentially driving the price towards the $200 mark. The support at $134 remains vital. If this level holds, it could stabilize the price, providing a foundation for potential recovery.
The daily trading chart for Solana (SOL) presents a notable bearish trend, as highlighted by its recent performance beneath key moving averages and resistance levels. Currently trading below $140.0, SOL has experienced a continuous bearish streak in the past 24 hours. Solana’s price has been navigating between a high of $141.10 and a low of $137.03.
The Keltner Channel (KC) indicators show the upper and lower bounds at $165.60 and $130.15 respectively, suggesting a broad trading range that Solana has struggled to break free from in recent weeks. The price consistently falling below the midline of the KC indicates a lack of bullish momentum to push the prices toward the upper band.
The Relative Strength Index (RSI) sits at a subdued level of 41.48, pointing towards a bearish sentiment without yet entering the oversold territory. This level suggests that while there is selling pressure, there may still be room for further downward movement before a potential reversal.
Additionally, the Moving Average Convergence Divergence (MACD) underscores the bearish scenario as it remains in the red with decreasing histogram bars, indicating diminishing momentum in recent price movements. This alignment of the MACD below its signal line further supports the ongoing bearish outlook for Solana, potentially setting the stage for more declines if the existing trend continues without bullish intervention.
Solana (SOL), however, has recently recorded a remarkable leap in the daily number of active users, which was revealed by the all-time maximum. The increase in the number of active users, which reached 2.3 million daily, makes it possible to confidently assume that there is a good growth potential even taking into account the recent price drop.
Usually an increase in number and active users implies greater network usage, increased inherent demand thus the prices are expected to go up. The expectation of interest rate cuts from the Federal Reserve next month could be interpreted as a game changer in the price of Solana. In the past when Fed policies have been toward easing, SOL has been positively biased and with more improvement in the macro picture, there could be great potential for some rallies in future.
If the expected rate cuts actually come into effect, that may improve the mood of the market in regards to cryptocurrency, and possibly, once again, push Solana over the $150 mark and move further to higher targets. Currently, recovery is possible if Solana manages to hold above the support at $134. In case this level is preserved and the general market starts improving, Solana may see another shot at the $164 resistance level.
