Key Takeaways
- Solana (SOL) has shown a strong upward price rally, trading above $135 after weeks of a downtrend.
- SOL’s price breaking above the $147 to $150 resistance zone could boost the price rally in the coming weeks.
- TVL, Transaction volumes, and dApps activities have increased in recent weeks, impacting SOL’s price to the upside.
Solana’s price crash of over 50% from a high of $295 has impacted its price and market sentiment surrounding its ecosystem. The price of Solana (SOL) saw its price retest a low of around $95, creating much panic in the crypto space for traders, investors, and some huge admirers of the crypto asset.
The price drop in Solana (SOL) was attributed to microeconomic uncertainties and a decline in volume across its DEXs and trading volume due to market uncertainties as traders and investors tried to preserve capital ahead of the market rebound.
In the last few weeks, the price of SOL has shown great strength, rallying from a low of $95 to a high of $120, reclaiming its key support zone as bulls rallied its price above $135. The price retraced towards the $124-mark area, making a retest to confirm this support area as the price eyes a further rally towards the $147 to $150 region.
Solana’s DEX Volume And Market Reactions
Source – Solana DEX Activities From DefiLlama
DEX volume and transaction activities in the last couple of months have seen a significant crash, resulting in the price of Solana also being affected. Initially, the total value locked for Solana was over $300 billion, but it crashed to $150 billion, over 50%, also affected by its transaction volume to 200 million TXs.
With the market looking promising in the last few days, there have been renewed expectations for Solana (SOL) as trading activities and volume have improved. The stock’s price has rallied towards $135.
With dApps activities gaining momentum and TVL increasing, crypto experts are beginning to speculate a potential rally towards the $180 to $200 region for Solana (SOL) if the price of SOL breaks above its $147 to $150 region with strong price volume to the upside.
Ali Martinez, a top crypto on-chain expert, according to his analysis on the Binance exchange, over 71% of traders on Binance are looking to long Solana, indicating a potential price shift and change in sentiment short-term for Solana, as this could boost its price to the upside.
Market expectations for an upside price rally for Solana (SOL) are beginning to increase. A breakout and close above its 50-day EMA (Exponential Moving Average) could see the price of SOL rally toward $175 to $180, with the possibility of price trading into $200 in the coming days.
Source – SOL 24HR Short Liquidation Heatmap From Coinglass
On-chain liquidation data from Coinglass proves a market shift to the upside. Short sellers would face liquidations around $136 as the price aims to trend higher.
