Solana ($SOL ) has entered a critical phase, currently testing the $180 support level after slipping below the key $220 and $215 thresholds. This support level, which acted as resistance in late October 2024, now holds potential for a rebound. Adding to the optimism, the SMA 5 has crossed over the SMA 10, signaling a possible shift towards an upward trend. Traders should watch closely as this could mark a significant momentum change for Solana.
Dominance in DEX Volume
In decentralized exchange (DEX) volumes, Solana continues to outpace competitors, boasting over $100 billion in monthly trading volume. Ethereum follows with $77.2 billion, while Base and Binance Smart Chain (BSC) report $44.5 billion and $41.7 billion, respectively. Smaller chains such as Arbitrum ($30.4 billion), Sui ($9.24 billion), and Avalanche ($7.33 billion) also show growth but remain far behind Solana’s lead.
Altcoin Season Signals Opportunities
The broader market is experiencing an altcoin rally, with the total market cap surpassing $3.36 trillion. This trend bodes well for Solana, as favorable conditions for altcoins could propel its value higher. Analysts anticipate the first quarter of 2025 to be pivotal, potentially driving SOL to new highs that could surpass its previous peaks.
With strong technical signals and dominance in DEX activity, Solana appears well-positioned to capitalize on the growing altcoin momentum. Investors and traders should keep a close eye on SOL as it navigates this crucial phase.
