SOL price dropped to $121, but bulls maintained support above $120-$125 range.
Solana network recorded 397 million weekly transactions, outperforming many altcoins.
Technical indicators suggest potential for bullish crossover and upward movement.
Solana (SOL) has demonstrated remarkable resilience in the face of recent market turbulence, with its price action and network metrics painting a complex picture of challenges and opportunities. The slumpish market pushed OL to test levels near $121 amidst a surge in trading volume that exceeded $3 billion.
This price movement coincided with a broader market pullback, as overall crypto trading volume approached the $100 billion mark.
While many anticipated SOL to retreat further into the critical support zone between $120 and $125, bull’s managed to maintain price levels above this range, potentially setting the stage for a resurgence of the asset’s ascending trend.
Solana’s underlying network performance continues to impress, solidifying its position as a formidable competitor to Ethereum. The platform recently achieved a milestone of over 397 million weekly transactions, coupled with an impressive 12.78 million weekly active addresses.
Solana shows a nuanced outlook
From a technical analysis perspective, SOL’s price action presents a nuanced outlook. The cryptocurrency has repeatedly tested its support zone in recent weeks, with bulls consistently staging rebounds.
However, the prolonged hovering around this support level for over a week suggests a potential weakening of bullish momentum.
Adding to the technical complexity, a bearish crossover between the 50-day and 100-day moving averages has occurred, typically a bearish signal. Counterbalancing this, the Moving Average Convergence Divergence (MACD) indicator displays promising bullish possibilities, hinting at a potential positive crossover in the near future.
Looking ahead, Solana appears poised for a potential bullish breakout, which could catalyze a healthy price run in the coming days. The key to this optimistic scenario lies in the bulls’ ability to reclaim the ascending support line.
