Key Insights
- Solana price is now holding near $180 while Bitcoin and Ethereum continue to weaken.
- Factors like on-chain activity, DeFi expansion, and new products on the network are expected to boost SOL demand.
- Analysts are now watching the $200 resistance as the next make-or-break level.
Solana price action has been impressive lately, especially as the general crypto market struggles. Bitcoin and Ethereum have both pulled back recently. However, SOL continues to defend its support levels around $180.
This stability indicates that its demand has been strong, and investors are especially interested. Traders are now debating whether SOL is preparing for a breakout above $200. Otherwise, it will be trapped in a longer consolidation.
Solana price action between $175 and $180 will be crucial. Its performance in the coming weeks will determine the overall trend.
On-chain metrics Show Strong Momentum for Solana Price
The on-chain data of SOL is now showing clear signs of rising demand. For example, transaction volumes have jumped by around 32% over the last few days, to more than 590 million USD.
SolScan data also shows active addresses have climbed above the 2.9 million mark. They have increased by around 5.3% over the last few days.
Fees have also spiked by around 44% to around $7.68 million, showing higher network utility. Defi participation has been on the rise lately. Solana’s total value locked is now close to $9 billion after rising by nearly 50% in the last few months.
More than 3.3 million wallets are now active on the network, a major sign of participation. The memecoin market is another source of strength for Solana.
Moreover, retail wallets continue to accumulate Solana during price drops. This has formed a support zone between $175 and $180. It could be one of the factors that save the Solana price from deeper declines over the next few days.
Solana Price Faces Resistance
SOL price continues to trade above a critical resistance area between $177 and $181. A move above $200 would confirm the asset’s strength. On the other hand, a failure to hold above this price level could keep the Solana price trapped.
Technical indicators are also showing mixed signals. The weekly supertrend, for example, has turned bearish for the first time in December 2023. This pattern has historically led to consolidation phases pushing SOL underneath the $150 mark.
The weekly RSI also shows a bearish divergence that indicates possible weakness. If Solana’s price closes above the $200 mark this week, the bearish setup may be invalidated.
A decisive breakout could help the asset target the $250 level. If the weekly close falls under $180, the Solana price may retrace toward $155 or even $150.
Institutional Moves Add Confidence
Coinbase’s introduction of U.S.-regulated Solana derivatives has also been a major sentiment booster for institutional traders. This move is part of a larger trend as exchanges compete to offer more complex trading tools.
These products give investors new ways to gain exposure to SOL. In return, they provide deeper liquidity to the market.
Analysts believe that institutional access is an important signal. When more products become available, the long-term demand for SOL could rise.
Market Sentiment Remains Divided
Some analysts warn that the Solana price could verge on a consolidation phase. This may occur if the bearish technical conditions play out.
Others, like Bitcoinsensus, indicate that SOL trades in a cup and handle formation in the weekly timeframe. It could be on the verge of an explosion to $2,500.
Meanwhile, the crypto fear and greed index shows that market sentiment gravitates towards fear. Despite this, Solana is relatively strong among top assets. Investors are now looking at the weekly close to determine what happens next.
