Solana faced higher volatility yesterday, falling 7% after the Federal Reserve announced a 25 basis point rate cut and fewer projected rate cuts in 2024. Despite the sell-off, Solana’s price action remained resilient as it managed to stay above key support levels, boosting confidence in its ability to withstand macroeconomic shifts.
While markets 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 surged to nearly 67 million, reflecting growing adoption and sustained network activity. This strong transaction volume highlights Solana’s position as a leading blockchain platform that developers and users continue to rely on for its scalability and efficiency.
Analysts say that holding above key support levels could allow SOL to stage a strong rally, especially if broader market conditions stabilize. This bullish outlook is fueled by an increase in on-chain activity, suggesting that long-term fundamentals remain intact.
Solana holds key demand
Solana has shown resilience in the face of market turmoil, holding above a key demand level around $210 following yesterday’s sell-off sparked by the Fed’s policy announcement. This key support level has reinforced bullish sentiment towards the asset, with many analysts eyeing an imminent breakout.
Top analyst Jelle recently provided a convincing technical analysis on X, noting that Solana has managed to break lower, hold its position above monthly and weekly support levels, and continue to trade within its descending wedge pattern. According to Jelle, this setup suggests that a breakout is imminent and Solana is aiming for new all-time highs soon.
Solana successfully holds monthly/weekly support | Source: Jelle on X
Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana’s network activity. Data shared by Ali Martinez shows that the Solana network is approaching 67 million transactions per day, highlighting strong adoption and user engagement. This enhanced network activity highlights Solana’s utility and strengthens the foundation for continued price growth.
If Solana holds above $210 over the next few days, it could spark a massive rally as bullish momentum builds. Traders and investors are closely watching the asset’s price action for signs of a decisive move, with a combination of strong technical indicators and on-chain metrics suggesting a surge to new highs is possible.
Price trend: Liquidity is higher than
Solana is trading at $210, a key level it has held for several days despite the widening market range. This price point indicates strong demand, but simply holding this level will not ignite the next rally. A decisive push above $240 will be crucial for Solana to regain bullish momentum. Such a move would signal a return of strength and pave the way for higher price targets.
SOL testing related requirements | Source: SOLUSDT chart on TradingView
A crucial intermediate step lies at the $225 mark. If Solana can reclaim this level with conviction, it could confirm the bullish trend and set the stage for further upward momentum. This could attract more buying interest as traders and investors interpret the move as a sign of strength.