- Solana (SOL) is attempting to break above $200 as Bitcoin, Ethereum, and XRP show signs of a market recovery.
- However, low on-chain activity and technical resistance may limit SOL’s short-term gains.
Solana (SOL) is making a notable comeback, trading above $195 on Thursday, as optimism returns to the broader cryptocurrency market. Alongside Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), SOL is attempting to reclaim its bullish stance after a brief intraday dip.
Crypto Market Sentiment Improves
Bitcoin recently climbed back above $111,000 following a short dip below $110,000, while Ethereum is showing potential to extend gains beyond the $4,100 mark. Ripple (XRP) has also seen slight upward movements, reflecting renewed risk-on sentiment among crypto investors. This collective rise in crypto majors appears to be supporting Solana’s push toward the $200 region.
On-Chain Activity Remains a Concern
Despite the positive price action, Solana faces challenges on the network activity front. DefiLlama reports a sharp decline in active addresses, with only 8.04 million wallets transacting in the week of October 13–19, compared to 33.63 million in May. This persistent drop in engagement signals weaker demand and could limit SOL’s ability to sustain long-term upward momentum.
Active addresses track wallets sending or receiving SOL on the blockchain. The lower figures suggest that while price gains are visible, retail and institutional participation may not fully support the bullish outlook.
Technical Outlook for Solana
From a technical perspective, SOL is trading between critical levels. The 200-day Exponential Moving Average (EMA) provides immediate support at $186, while resistance sits at the 100-day EMA near $199. Solana’s intraday rebound stalled at $197, showing that bulls have yet to fully assert control.
Key milestones for SOL include a daily close above $199 and a successful break of the $200 mark. If retail participation steadies, traders could target higher resistance at the 50-day EMA around $209. The Relative Strength Index (RSI) remains in bearish territory at 43 but shows stability, suggesting the path of least resistance may lean upward.
However, the Moving Average Convergence Divergence (MACD) continues to signal selling pressure, indicating that cautious investors might anticipate a retest of support at $186.
Solana’s path toward $200 depends on both price action and network activity. While the broader crypto market recovery is helping SOL regain ground, low on-chain engagement and persistent technical hurdles could keep gains limited in the short term.
ALSO READ:Solana Breaks Records With $5.8B DeFi Volume, Outshining Ethereum
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
About the Author
