Solana faced significant volatility yesterday, with the stock falling 7% after the Federal Reserve announced a 25 basis point rate cut and projected fewer rate cuts in 2024. Despite the sell-off, Solana’s price action remained resilient, managing to hold 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 paint a more optimistic picture. The number of daily transactions on the Solana network surged to nearly 67 million, reflecting growing adoption and sustained network activity. Such 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 believe that if SOL can sustain above key support levels, it could be poised for a strong rebound, especially if broader market conditions stabilize. This bullish outlook is further strengthened by an increase in on-chain activity, suggesting that long-term fundamentals remain intact.
Solana meets a critical need
Solana has shown resilience amid market turmoil, remaining above key demand levels around $210 following yesterday’s sell-off sparked by the Fed’s policy announcement. This key support level has bolstered bullish sentiment towards the asset, with many analysts seeing Solana as on the verge of a breakout.
Top analyst Jelle recently provided a compelling technical analysis of X, noting that Solana has managed to break lower, maintain its position above monthly and weekly support levels, and continue to trade within its falling wedge pattern. According to Jelle, this setup suggests that a breakout is imminent and Solana could soon set new all-time highs.
Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana’s network activity. Ali
Data shared by Martinez
The Solana network is approaching 67 million daily transactions, highlighting its strong adoption and user engagement. The increase in network activity underscores Solana’s utility and sets the stage for continued price growth.
If Solana sustains above $210 in the coming 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 and on-chain indicators suggesting the asset could surge to new highs.
Price Action: Liquidity Above
Solana is trading at $210, and the stock has held this key level for several days despite volatile markets. This price point indicates strong demand, but holding this level alone will not spark the next rally. A decisive breakout above $240 will be crucial for Solana to resume bullish momentum. Such a move would signal renewed strength and pave the way for higher price targets.
A crucial intermediate step is located at the $225 mark. If Solana can reclaim this level with conviction, it will likely confirm the bullish trend and set the stage for further gains. This could attract more buying interest as traders and investors interpret the move as a sign of strength.
However, failure to move through these resistance levels could see Solana continue to be range-bound and limit its ability to exploit recently established support levels. As market conditions continue to evolve, Solana’s ability to break through these key thresholds will determine whether it enters a stronger upward trajectory or remains stuck in consolidation.