Solana’s uptrend strengthens, but investors’ moves raise doubts
2024-11-15

Solana (SOL) price has seen a remarkable 40% surge in recent weeks, climbing to $210. Despite this bullish uptrend, SOL is encountering challenges at the $221 resistance level, which could signal a potential reversal. 

Investor activity on the Solana network suggests the momentum might face hurdles in sustaining further gains.  

Transaction activity on the Solana network has increased significantly during the recent price rally. The network recently hit a yearly high in transaction count, highlighting growing interest among participants. However, this increase falls short of expectations, given the current hype surrounding Solana ETFs and broader market bullishness.  

This moderate network activity raises concerns about the sustainability of the rally. If Solana fails to attract more significant user engagement, its price momentum might falter, especially as broader market cues begin to stabilize.  

Solana’s macro momentum remains strong, supported by technical indicators. The Average Directional Index (ADX) is at 32, well above the 25.0 threshold, confirming a strong uptrend. 

Solana is currently trading at $210, holding steady above its support level of $201. Despite the recent rally, the “Ethereum killer” is struggling to break past the $221 resistance level, which remains a significant barrier to reaching $245.  

The mixed sentiment indicates that SOL may consolidate between $201 and $221 until a clearer directional trend emerges. This range-bound movement could dominate the short-term outlook unless broader market conditions shift dramatically.  

However, if investors opt for profit-taking, Solana could see a decline below the $201 support level. Such a drawdown would invalidate the current bullish-neutral outlook, potentially sending SOL to $186, marking a significant setback for the altcoin’s rally.  