- Solana’s bullish surge faces resistance, with potential for new highs but risks of a pullback.
- SOL’s technical indicators show cautious optimism, but overcoming resistance at $160 is crucial.
Solana [SOL] has demonstrated a recovery in the past 24 hours, outpacing many of its crypto peers. However, analysts urge caution, suggesting that the recent bullish surge may be a potential bull trap.
Crypto analyst CrediBULL Crypto has raised concerns about the current bullish trend of Solana against Bitcoin [BTC].
CrediBULL commented on X (formerly Twitter), stating,
“If we can get past this cluster of resistance here new local highs will come next. That being said, I think all those built-up lows below us ultimately end up getting swept, so don’t get euphoric if we do take the highs here.”
This suggests that while a breakout may occur, there is a risk of a subsequent pullback, leading to a potential fakeout.
Source: X
Solana’s market performance and technical indicators
As of the time of writing, the price of Solana was $151.34, marking a 7.32% increase in the last 24 hours. Despite this surge, SOL has seen a 16.98% decline over the past week.
The price recently rebounded from a low of around $120 and is approaching the middle line of the Bollinger Bands, which are set at approximately $200 and $133, indicating potential volatility.
During this publication, the Relative Strength Index (RSI) stands at 46.90, suggesting that SOL is neither overbought nor oversold. This level indicates the possibility of further upward momentum if buying pressure increases.
Source: TradingView
Moreover, the MACD histogram remains negative but is showing signs of narrowing, with a potential bullish crossover if the positive momentum continues.
These technical indicators suggest a cautious yet possibly bullish outlook for SOL, contingent on overcoming resistance levels around $160.
Meanwhile, the possibility of Solana-based exchange-traded funds (ETFs) has emerged as a topic of heated discussion.
VanEck’s Head of Digital Assets Research, Mathew Sigel, has taken a bullish stance, suggesting that Solana ETFs could materialize sooner than anticipated.
This optimistic view contrasts with the conservative approach of industry giant BlackRock, which considers such a development premature at this time.
Market activity and user engagement
According to DefiLlama, Solana’s active addresses in the past 24 hours reached 1.04 million, with 32.55 million transactions recorded.
The Total Value Locked (TVL) in Solana’s ecosystem stands at $4.808 billion, showing an 8.61% increase over the past day. This indicates growing user engagement and network utilization.
Source: DefiLlama
Despite fluctuations, the overall trend in active addresses appears consistently upward. The TVL trend has experienced notable changes, with peaks in late 2021 and a sharp increase in 2024, highlighting the ecosystem’s dynamic nature.
Realistic or not, here’s SOL’s market cap in BTC’s terms
According to a recent AMBCrypto report, Solana has arguably been the golden goose of the top cryptocurrencies by market cap. Its meteoric rise since October last year attracted a lot of investors and traders.
Consequently, each dip that came along since then was followed up by a rapid recovery.