Solana achieved an important milestone during the U.S. election week, with on-chain transaction volume reaching 172 million. This achievement highlights Solana's dominance in the blockchain ecosystem, with nearly half of blockchain activity attributed to this network.
With its speed, scalability, and low transaction costs, Solana has become a popular choice for developers and users. Its market cap of $112.36 billion further solidifies its position as the fourth largest cryptocurrency.
Solana faces key resistance: Technical outlook
At the time of writing, Solana's trading price is $237, having risen over 9% in a day. After breaking out of a symmetrical triangle pattern, SOL has surpassed the resistance level of $222, which is now a support level.
Technical charts show that SOL's subsequent trend will depend on whether it can successfully break through a new resistance area. What do you think about Solana's price performance?
Solana is testing the resistance area of $241-$242, currently consolidating around this key pivot point. Recent candlestick patterns show a weakening of buyer momentum, which may open a downward channel for price pullback.
Investors need to watch for breakthroughs or signs of retreat in this range to determine the direction of subsequent trends.
Fibonacci retracement analysis shows that $234.89 (23.6%) and $230.58 (38.2%) are immediate support areas for Solana. If the price fails to hold above $242, a retest of these key support levels may occur.
However, if it successfully breaks through $242, it may trigger bullish momentum with target price levels of $245.95 and $250.33. Investors should closely monitor for breakthroughs or downward signals in this resistance range.
The momentum indicator shows overbought signals
The Relative Strength Index (RSI) reached 74, indicating that the market is in the overbought zone and may show signs of cooling off. However, the 50-day Exponential Moving Average (EMA) is at $217.08, providing a strong support baseline, maintaining Solana's bullish structure. The intertwining of resistance and support suggests that Solana may enter a consolidation phase before the next significant volatility.
Key points summary:
Resistance levels: $242, $245.95, $250.33
Support levels: $234.89 (23.6% Fib), $230.58 (38.2% Fib), $217.08 (50 EMA)
Momentum: RSI is 74.80, indicating an overbought condition, suggesting a possible pullback.
Solana's dominance in blockchain activity and its technical trends bring key moments for traders
Solana's dominance in blockchain activity and current technical setup indicate that the market may be approaching a key moment. A breakout above $242 could extend the bullish momentum for SOL, while failure to do so may trigger a correction phase.
Solana's momentum has boosted confidence in blockchain, driving attention to projects like Flockerz, which is disrupting the meme coin market through a community-driven investment model.
