Solana faced increased volatility yesterday, falling 7% following the Federal Reserve’s announcement of a 25 basis point rate cut and fewer cuts projected for 2024. Despite the sell-off, Solana’s price action remains resilient, as it managed to stay above a critical support level. reinforce confidence in their ability to weather macroeconomic changes.
While the market reacted to the Fed’s cautious tone, Solana’s on-chain metrics tell a more optimistic story. The number of daily transactions on the Solana network has increased, approaching 67 million, reflecting growing adoption and sustained network activity. This strong transaction volume highlights Solana’s position as a leading blockchain platform, and developers and users continue to trust its scalability and efficiency.
Analysts suggest holding above its key support level could position SOL for a strong reboundparticularly if general market conditions stabilize. Rising on-chain activity adds to this bullish outlook, indicating that long-term fundamentals remain intact.
Solana maintains key demand
Solana demonstrates resilience in the face of market turmoil, holding above key demand levels of around $210 following yesterday’s sell-off triggered by the Federal Reserve’s policy announcements. This critical support level reinforces bullish sentiment for the asset, with many analysts predicting a breakout on the horizon.
Leading analyst Jelle recently provided a compelling technical analysis in Xnoting that Solana successfully broke through the lows, maintained its position above the monthly and weekly support levels and continued to trade within its falling wedge pattern. According to Jelle, this setup suggests that a breakout is imminent, and Solana is targeting new all-time highs soon.
Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana network activity. Ali MartÃnez shared data showing that the Solana network is approaching 67 million daily transactions, underscoring strong user adoption and engagement. This increased network activity highlights Solana’s utility and strengthens the foundation for sustained price growth.
If Solana holds above the $210 level in the coming days, it could trigger a significant rally as bullish momentum increases. Traders and investors are closely watching the asset’s price action for signs of a decisive move, and the combination of strong technical and on-chain indicators point towards a possible rise to new highs.
Price Action: Liquidity Above
Solana is trading at $210, a key level it has held for several days despite broader market volatility. This price demonstrates solid demand, but holding this level alone will not trigger the next rally. A decisive push above $240 is critical for Solana to regain bullish momentum. This move would signal renewed strength and pave the way for higher price targets.
A crucial intermediate step lies at the $225 mark. If Solana can reclaim this level with conviction, it would likely confirm an uptrend and set the stage for further bullish momentum. This could attract additional buying interest as traders and investors interpret the move as a sign of strength.
However, failing to break through these resistance levels may keep Solana rangebound and limit its ability to capitalize on the recent support it has established. As market conditions continue to evolve, Solana’s ability to surpass these key thresholds will determine whether it moves onto a stronger upward trajectory or remains stuck in consolidation.
Featured image of Dall-E, TradingView chart
Fountain: NewsBTC.com
