Solana pullback near $175 suggests the potential for price reversal.
Network activity remains strong despite the recent price decline.
Solana (SOL) has been in the spotlight due to its notable price movements and robust network activity. Currently trading at $193, SOL has surged 5% in the past 24 hours despite a 7% decline in trading volume. Over the past week, however, it has dropped 12%, with its monthly low of $175 recorded just four days ago. The token remains 27% below its all-time high of $264.
The recent pullback aligns with the 61.8% Fibonacci retracement level, measured from September’s lows, suggesting a possible price reversal. Historically, reversals often occur at this “golden ratio” level, and SOL’s support at $175 could pave the way for recovery. However, a deviation down to $160 remains a possibility.
Meanwhile, On-chain data reflects a mixed sentiment. While Solana’s funding rates turned negative for the first time in six weeks, signalling bearish sentiment, derivatives data reveals that 82% of top traders on Binance remain bullish. Solana’s network activity paints a different picture: its total value locked (TVL) recently reached a 2024 high of 55.37 million SOL, and daily transaction volume peaked at 67.77 million, the highest in 11 months.
SOL To Go Down Below $170?
Technical analysis indicates that SOL is hovering around a key support zone of $173-$176. A bullish reversal could target resistance levels at $193.20, $209.93, and potentially $230.64. However, failure to hold this support could push prices toward $152.65.
In conclusion, Solana’s current price levels and network activity suggest a critical juncture for the token. With signs of bearish exhaustion and robust on-chain metrics, a recovery appears likely, but market participants remain cautious about potential downside risks.
