Solana (SOL) Price Drops Below $200: Future Trend Analysis
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Despite Solana (SOL) recently retreating to $191 and a 16% drop in trading volume to $2 billion, its ecosystem continues to expand, demonstrating strong upward potential. Solana's Total Value Locked (TVL) has reached $20 billion, showcasing its robust performance in staking, lending, and liquid staking.
Ascending Wedge Pattern and Future Rebound
Currently, SOL has formed an ascending wedge pattern, which typically indicates a possible reversal during a bull market. Although the price struggles near the strong resistance level of $200, the ascending support line remains solid, indicating that market sentiment is still bullish. If Solana can break through the $200 resistance, it may trigger a rebound, targeting $236, and potentially exceeding $400 in the first quarter of 2025.
If it fails to break through $200, a pullback to around the $180 support level may occur.
Strong Ecosystem Support
Solana's TVL has reached an all-time high, reflecting high participation in areas such as staking, lending, and liquid staking. Additionally, the stablecoin market cap is $5.226 billion, enhancing its liquidity, and the network's daily trading volume and active addresses also show strong growth momentum.
Performance and Challenges in 2024
Solana is performing well in 2024, particularly in DEX trading volume and revenue growth from Pumpdotfun exceeding $80 million. Although Solana leads other platforms like BSC and Ethereum in trading volume, investor confidence has been somewhat affected due to Pumpdotfun's massive sell-off of SOL tokens, with some wallet holders seeing minimal profits.
Looking Ahead
Despite facing trust issues, Solana still possesses strong market appeal, especially in the meme coin sector. If potential trust crises can be resolved and it maintains its market leadership, Solana is expected to see a more robust rally in 2025.
Summary: Solana is currently near a critical technical resistance level, and if it breaks through the $200 resistance, it may trigger a larger rebound; however, if it fails to break through, it faces a pullback risk. With the development of its ecosystem, Solana may exhibit a bullish trend in the coming months.
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