Solana’s adoption milestones and bullish momentum make it a potential breakout.

  • Solana’s $100 billion in monthly DEX volume and $11 billion in year-to-date volume highlight its growing adoption.

  • Bullish liquidations and steady developments boost confidence in continued price gains.

Solana [SOL] broke records, surpassing $100 billion in monthly DEX volume in November 2024 while maintaining an industry-leading 11 billion transactions year-to-date. These milestones highlight its rapid adoption and technological prowess.

At press time, Solana is trading at $240.77, reflecting a 2.58% drop over the past 24 hours, after hitting a yearly high of $267 earlier this month. As a result, traders are wondering if this momentum will spark a sustained price rally, or if a further pullback is in store.

Price Analysis: Can SOL Maintain Its Support Level?

Despite the recent pullback, SOL’s price action is still showing strong momentum after a sharp rally earlier this month. The Bollinger Bands (BB) suggest that prices are retreating from overbought conditions.

The upper band is located at $267.68, while the middle band provides a critical support at $225.11. Moreover, the RSI is at 71.67, which suggests that Solana is consolidating near the overbought zone and entering a cool-down phase.

However, if SOL fails to sustain above $225, a deeper correction to $182.53 is possible. On the other hand, a successful hold of the $225 support could gather momentum for the asset to once again rally towards the $267 resistance.

Therefore, this area is crucial for future price movements.

Steady development activity supports long-term growth

In addition to its impressive market performance, Solana continues to show sustained development activity. As of November 24, the activity level was 20.81, slightly lower than in previous months.

However, this steady progress highlights SOL’s ongoing commitment to enhancing its ecosystem. As such, this continued development lays a solid foundation for long-term adoption and price stability.

Liquidations reveal bullish sentiment

Solana’s liquidation data further reflects the market’s optimism. On November 25, $10.47 million in long positions were liquidated, while only $1.17 million in short positions were liquidated, showing strong bullish sentiment among traders.

This suggests that despite the recent price drop, most market participants expect Solana to continue rising and could soon test its previous highs.

Is SOL ready to bounce back again?

Solana’s impressive milestones in adoption and transaction volume, coupled with strong technical and market fundamentals, indicate that it is poised for further growth.

If SOL holds the $225 support, a retest of $267 and above is very likely. However, failure to sustain this level could result in a temporary pullback. Currently, bullish sentiment and solid fundamentals favor an upside price breakout in the coming weeks.