Solana (SOL) price has seen a significant 40% increase in the past few weeks, reaching $210. Despite the bullish trend, SOL is facing challenges at the $221 resistance level, which could indicate a possible reversal.
Investor activity on the Solana network suggests that momentum could face, above all, obstacles to sustaining further gains.
Solana Investors Need Motivation
Transaction activity on the Solana network has increased significantly during the recent price rally. The network recently reached a yearly high in the number of transactions, highlighting the growing interest among participants. However, this increase falls short of expectations given the current enthusiasm around Solana ETFs and general market optimism.
This subdued on-chain activity raises concerns about the sustainability of the rally. If Solana fails to attract more significant user engagement, its price momentum could falter, especially as broader market signals begin to stabilize.
Solana Transaction Count. Source: Glassnode
Solana’s macro momentum remains strong, supported mainly by technical indicators. The Average Directional Index (ADX) is at 32, well above the 25.0 threshold, confirming a strong uptrend. This suggests that Solana could continue its upward trajectory if investors remain active.
However, investor participation will be crucial to sustaining this momentum. Should engagement wane, the current uptrend could lose momentum, potentially triggering a correction in SOL’s price.
Solana ADX. Source: TradingView
SOL Price Prediction: Barriers Halt Growth
Solana is currently trading at $210, holding above its $201 support level. Despite the recent rally, the asset is struggling to break above the $221 resistance level, which remains a significant barrier to reaching $245.
The mixed sentiment indicates that SOL could consolidate between $201 and $221 until a clearer directional trend emerges. This range-bound movement could dominate the near-term outlook unless broader market conditions change dramatically.
Solana Price Analysis. Source: TradingView
However, if investors opt to take profits, Solana could see a dip below the $201 support level. Such a decline would invalidate the current bullish-neutral outlook, potentially sending SOL to $186, marking a significant setback for the altcoin’s rally.
The article Solana’s Uptrend Strengthens, But Investors Leave Doubts was first seen on BeInCrypto Brasil.
