Despite the broader market showing signs of recovery, Solana's price continues to accumulate within the pre-determined range despite the growing fundamentals and on-chain reading, the sluggish behaviour of the SOL price hints towards a major price action.
The Solana price is juggling around a narrow range after triggering a rebound from the dynamic support close to $142. The price is jammed around the narrow range, but the volume has been rising, which has recently surged above $3 billion. This could lead towards a potential upswing, but considering the SOL price rally, the bears seem to remain dominant.
On the other hand, the fundamentals are strengthening, due to which Solana marked an eventful week. The developers fixed a crucial bug and patched a zero-day vulnerability that could have allowed hackers to mint unlimited tokens. This swift response prevented potential damage to the network.
Coming to the on-chain figures, the SOL TVL took a dip by close to 2.8% and maintains second position after Ethereum. The DEX volume also drops by 10% below $20 billion, while the daily active addresses remain steady at 3.8 million.
The main development in the ecosystem includes DeFi Development Corp. acquiring a Solana validator for $3.5 million to self-stake SOL & earn rewards.
While the impact on the SOL price remains negligible. Does this suggest the investors do not see the token with the potential of going long, or have they lost confidence in the token’s growth trajectory? Here’s what you need to know!
The long-term price actions display no major deviation, but the short-term price action has been flashing bearish signals. After failing to sustain above $150, the SOL price seems to have been following a trend. As StochRSI rises to the overbought zone, the price marks the local highs, followed by a rejection. This has occurred a couple of times, and the current trade setup suggests yet another similar pattern is in the making. On the other hand, the Gaussian channel remains bearish in the short term.
Considering the chart pattern, it appears to be feasible that the Solana (SOL) price could incur more losses in the next few hours. It may drop below the dynamic support at $141.19 and test the levels close to $140 or range slightly below around $138. However, a rebound could follow, but until Solana remains stuck within this pattern, no major price action can be expected. On the other hand, the bearish scenario could be squashed if the SOL price transforms the resistance at $155 into a strong support.
