Solana (SOL) has bounced back over the last 24 hours, showing signs of recovery despite recent market turbulence. At the time of writing, SOL was trading at $138, up 5.87%, but still down 20% for the month—a stark reminder of the market’s recent volatility.
SOL Struggles at Key Resistance Level
After hitting a low of $128.49, Solana managed to regain some strength. However, $140 remains a key resistance level, where sellers continue to push prices down. If SOL breaks and holds above this mark, it could signal renewed bullish momentum.
A notable 130.42% spike in trading volume to $3.33 billion suggests growing market interest. Meanwhile, open interest in Solana Futures surged by 11.01% to $5.25 billion, indicating that more traders are taking leveraged positions. This could either fuel further price gains or trigger sharp corrections if liquidations occur.
Technical Indicators Suggest Uncertainty
Solana’s Relative Strength Index (RSI) currently stands at 67, putting it in a neutral zone. While not yet overbought, it is nearing levels where selling pressure could increase. If the RSI crosses 70, it may indicate that SOL is overextended, potentially leading to a price pullback.
On the other hand, if the RSI stabilizes or declines slightly, Solana could consolidate before attempting another upward move.
Active Users and Network Activity Hold the Key
One major factor in Solana’s price resilience is network usage. Recently, the number of active wallets dropped to 1 million (March 20) before rebounding to 3 million (March 23). This uptick in user activity could indicate rising demand, which may help stabilize SOL’s price.
Similarly, new wallet creation saw a significant dip around March 19-20 but has since recovered—another potential bullish indicator.
What’s Next for SOL?
For Solana to maintain its momentum, a decisive break above $140 is crucial. The surge in trading volume is a positive sign, but sustained buying pressure is necessary. If demand slows, SOL could struggle to hold its gains and may face another dip.
Also Read: Solana (SOL) Price Analysis: Is a Bullish Breakout on the Horizon?
Over the next few days, traders will closely watch whether Solana holds strong or succumbs to renewed selling pressure. The battle at $140 will likely determine its next big move.
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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