As Bitcoin clings to volatile swings near the $67,000 mark, Solana (SOL) is proving its resilience, emerging as a powerhouse in the decentralized exchange (DEX) market. Recently, Solana’s DEX volumes have eclipsed Ethereum’s, sending SOL prices soaring. With momentum building and its price trending toward critical levels, could this rally push Solana past the $200 threshold? Let’s dive into Solana’s latest price action and what it might signal for the days ahead.
Solana (SOL) Price Overview – Bulls Gain Ground
Over the weekend, Solana’s price climbed by roughly 8%, countering a previous 7% dip and marking two consecutive bullish candles on the daily chart. However, while this rally challenged a resistance level at $177, the bullish momentum stalled, triggering a minor intraday drop of 1.78%, bringing the current SOL price down to around $173. This hesitancy has led some traders to anticipate a period of consolidation, with SOL potentially hovering above the $164 support level.
On the 4-hour chart, Solana has formed a rising channel, reaching past $175 but struggling to secure higher highs. This setup, combined with bearish signals like the “triple black crow” pattern (three consecutive bearish candles), hints at a possible pullback. Currently, SOL sits near a critical support trendline at $164, where a breakdown could result in a more substantial decline.
Technical indicators suggest that SOL may be at risk of a double-top reversal pattern, with the neckline standing at $164. To maintain upward momentum, bulls will need to defend this trendline and the nearby 50-day EMA (Exponential Moving Average), both crucial for preventing further drops. Should bears manage a breakdown below these levels, the likelihood of SOL slipping toward $150 increases, with support from the 200 EMA near $156 as a final defense.
If, however, buyers regain control, we could see SOL form an ascending triangle with a resistance ceiling at $177. Successfully breaking through this level could position Solana to retest the critical $200 psychological mark, setting the stage for a potential bull rally.
Solana Dominates Ethereum in DEX Volume
While price movements capture much of the attention, Solana’s influence in the decentralized market continues to grow. Last week, Solana outpaced Ethereum in DEX volume, reaching an all-time high of 35% dominance across all blockchains. Solana’s weekly DEX volume hit an impressive $15.78 billion, far surpassing Ethereum’s $8.87 billion—a 78% advantage.
This surge underscores Solana’s increasing appeal as a decentralized powerhouse. With its ability to handle high transaction volumes at lower costs, Solana is positioning itself as a serious competitor in the DeFi ecosystem, a role that may further bolster its price in the long term.
Price Prediction – Will Solana Surge Beyond $200?
The next few days will be crucial for SOL. While short-term patterns hint at a potential correction, the bulls are well-positioned to defend multiple support levels. Key areas to watch include:
- 50 EMA at $168: A critical support that could catalyze a bounce if SOL falls slightly.
- Trendline at $165 and Double-Top Neckline at $164: These supports are pivotal for avoiding a steeper decline.
- 200 EMA at $156: The last line of defense before a potential dip to $150.
Also Read: Solana [SOL] Staking Hits $10M In 24 Hours With 22% APY—Is A Bull Run Next?
Should SOL see a bullish rebound from these supports, it could form an ascending triangle targeting $177. A breakout from this pattern could propel SOL above $200, especially if broader market conditions remain favorable.
Solana’s growing dominance in the DEX market, combined with promising price action, suggests the potential for a bullish breakout. While caution is warranted with bearish reversal signals in play, a robust support base offers the bulls several chances to regain momentum. With a potential rally to $200 on the horizon, Solana’s resilience will be tested as it navigates these key price levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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