- Solana (SOL) is showing promising momentum, trading above $154 and poised to test the key resistance level of $172.91 amid increasing developer activity and stablecoin inflows.
- Technical indicators suggest potential gains, although some corrections may occur before further upward movement.
Solana (SOL) has shown promising gains recently, with the cryptocurrency trading above $154 as of Wednesday. As it hovers around $155, Solana’s price action suggests a potential rally towards the August peak of $172.91. This article delves into the factors driving SOL’s price movements and what to expect in the coming days.
Solana Gains Momentum Amid Developer Initiatives
Solana’s recent announcement of its developer bootcamp has created a buzz in the crypto community. This initiative is expected to bolster the network’s capabilities and attract more developers, thereby increasing the utility and demand for SOL.
Key Resistance Levels to Watch
For the past six months, SOL has traded within a range between the March peak of $210.18 and the August low of $110. Currently, the altcoin faces significant resistance at $172.89, which has remained untested for over two and a half months. Overcoming this level could pave the way for further gains.
Influx of Stablecoins Signals Increased Demand
Data from on-chain tracker Whale Alerts indicates a substantial inflow of stablecoins like USD Tether (USDT) to Binance, one of the leading centralized exchange platforms. Typically, such inflows suggest a rise in demand from retail investors, as stablecoins are often used for fiat on and off-ramps across exchanges. This trend could positively impact SOL’s price, driving it closer to the $172.89 resistance level.
On-Chain Indicators Show Positive Signs
According to data from The Block, on-chain metrics such as active addresses and new addresses on the Solana blockchain have been climbing throughout October 2024. This increase in activity signifies higher demand and engagement on the network, further supporting the bullish outlook for SOL.
Technical Analysis: Path to a Nearly 12% Gain
Solana has been in an uptrend since October 2023, though it has formed lower highs and lower lows over the past six months. Despite this, the SOL/USDT daily chart suggests that SOL could gain 11.71% and reach the resistance at $172.91. Before hitting this target, SOL will need to overcome the psychological barrier at $165.
Momentum Indicators Point to Continued Uptrend
The Moving Average Convergence Divergence (MACD) shows green histogram bars above the neutral line, indicating underlying positive momentum in SOL’s price trend. Additionally, the Fair Value Gap (FVG) between $148.86 and $150.31 serves as a key support level. Should a correction occur, SOL might sweep liquidity in this zone before resuming its upward trajectory.
Potential Corrections and Support Levels
The Relative Strength Index (RSI) currently reads 59 and is sloping downward on the daily chart, suggesting that while SOL may face some corrections, it remains above the neutral level. This means that any pullbacks could be temporary, providing buying opportunities for investors.
Solana Poised for Gains
With a strong developer ecosystem, increased on-chain activity, and positive technical indicators, Solana appears well-positioned to test the $172 resistance level. Investors should keep an eye on the key support and resistance levels mentioned, as SOL gears up for a potential nearly 12% gain.
Stay tuned to see if SOL can break through these critical barriers and continue its upward momentum in the coming days.
