Solana (SOL) has been experiencing price fluctuations recently, suffering a significant drop after reaching an all-time high (ATH) price. This pullback has raised concerns about a possible correction.
However, holders remain optimistic about the cryptocurrency’s prospects, supported by consistent on-chain activity and positive market sentiment.
Solana Investors Are Active
Despite the recent dip, active addresses on the Solana network have not seen a significant decline. High levels of participation suggest continued demand and optimism among investors, reinforcing the idea that the cryptocurrency still holds strong interest in the market. This sustained engagement is a positive indicator of the cryptocurrency’s future movement.
Investor activity on the network highlights the resilience of its user base. Continued participation has helped maintain price momentum even in the face of unfavorable market conditions. This consistent activity suggests that SOL’s recent fluctuations have not discouraged investors, keeping the bullish trend intact.
Solana Active Addresses. Source: Glassnode
From a technical perspective, Solana’s Relative Strength Index (RSI) is holding above the neutral line at 50, signaling resilience despite recent bearish trends. Remaining above this level indicates that the bullish momentum still has strength. As long as the RSI remains above neutral, the possibility of a sustained rally is viable.
However, if the RSI drops below 50, bearish momentum could intensify, leading to a potential decline.
Solana RSI. Source: TradingView
Price prediction
Solana is currently trading at $228. Despite holding above the $221 support level, Solana has fallen in the crypto market cap rankings, being surpassed by XRP.
This price level has historically acted as significant support and resistance, highlighting its importance. As long as the price remains above this threshold, the bullish outlook for the cryptocurrency remains intact.
A drop below the $221 support is considered unlikely, but if it happens, it could push SOL towards $201. A breakout of this level could signal deeper losses, challenge investor confidence and trigger broader market corrections.
Solana Price Analysis. Source: TradingView
If SOL can bounce off the $221 support, it could target the $245 resistance. Breaking this resistance would invalidate the bearish outlook, potentially pushing the altcoin back towards its ATH of $264.
The article Solana (SOL) Loses Market Share – Is There Reason to Worry? appeared first on BeInCrypto.
