Solana
Solana Consolidates, But SOL Can Still Reach $200 – Here’s How
- Solana is trading within a defined consolidation range, indicating growth ahead.
- The 200-day EMA and Fibonacci levels suggest key support and resistance points.
During the last trading sessions, Solana [SOL] experienced significant fluctuations in its market value. From a high of $172 last week, the digital asset has seen a correction, stabilizing around $151 at the time of writing.
This move represents a modest 0.1% increase over the past 24 hours. Such market behavior has highlighted a critical phase of price consolidation that could pave the way for future price dynamics.
Solana: Market Forecast
Altcoin crypto analyst Sherpa has provided an outlook on Solana’s current market performance, indicating a consolidation range between $185 and $120.
This range, according to Sherpa, indicated a period of market equilibrium following a rapid increase in prices. Such phases are not uncommon and often indicate that a market is preparing for its next big move.
The 200-day exponential moving average (EMA) is a technical analysis tool used to smooth price data by creating a constantly updated 200-day average price.
The EMA is crucial for identifying the overall market trend and potential support levels. Moving closer to this average suggests a near-term support level that could encourage buying activity among traders.
Source: Altcoin Sherpa/X
Further technical analysis from Sherpa using the Fibonacci retracement highlighted critical support and resistance levels.
At press time, the 0.382 retracement level was around $138.37, potentially serving as a pivot point for Solana price.
If the price falls below this mark, the following levels – 0.5 and 0.618 – are likely to serve as additional thresholds where price stabilization or reversal could occur.
Fundamental Analysis
Despite ongoing consolidation, the Solana network’s recent activities could hint at underlying strengths.
For example, the number of active addresses on the Solana network has jumpedgoing from less than a million to more than 1.1 million in just one week.
Source: Solscan
This increase in active addresses typically signals increasing user engagement or preparatory activity for upcoming transactions, which could lead to increased demand for SOL.
In terms of market derivatives, Solana Open interest– representing the total number of outstanding derivative contracts, such as options or futures that have not settled – showed an intriguing trend.
Although there was a slight decrease in open interest of around 3%, the volume of open interest jumped by 19.54%.
Source: Coinglass
This suggests that although fewer contracts were open, the remaining contracts were for larger volumes, indicating increased market activity and potential anticipation of large price movements.
There has also been a recent rise in Solana’s price volatility, according to Feeling.
Volatility indicates the degree of variation in trading prices, with higher volatility often leading to wider price swings, which can create opportunities for traders.
Source: Santiment
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Meanwhile, AMBCrypto recently reported that the Money Flow Index (MFI) and Relative Strength Index (RSI) have showed recent increases for Solanasuggesting increased buying pressure and potential for price increases.
Conversely, the Chaikin Money Flow (CMF) remained in a bearish zone, indicating that although buying pressure is on the rise, the overall money flow into Solana may be better, presenting mixed sentiment among traders. investors.