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Solana faced extreme volatility yesterday, falling 7% after the Fed announced a 25 basis point rate cut and fewer cuts expected for 2024. Despite the sell-off, Solana’s price action remains resilient as it managed to stay above the support level. Embarrassment. And enhancing confidence in its ability to face macroeconomic transformations.
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While the market reacted to the Fed’s dovish tone, Solana’s on-chain metrics tell a more optimistic story. The number of daily transactions on the Solana network has risen, approaching 67 million, reflecting increased adoption and continued network activity. This strong transaction volume highlights Solana’s position as a leading blockchain platform, with developers and users continuing to rely on its scalability and efficiency.
Analysts point out that staying above the key support level could position SOL for a strong recovery, especially if broader market conditions stabilize. Increased on-chain activity adds to this bullish outlook, suggesting that long-term fundamentals remain sound.
Solana Holdings main demand
Solana is showing its resilience in the face of market turmoil, maintaining key demand levels around $210 following yesterday’s sell-off as a result of Fed policy announcements. This critical support level reinforces the bullish sentiment for the asset, with many analysts eyeing a breakout on the horizon.
Chief analyst Geely recently made a compelling presentation Technical analysis on XNoting that Solana succeeded in taking out the bottoms, maintained his position above the monthly and weekly support levels, and continued trading within the falling wedge pattern. According to Geely, this setup indicates that a breakout is imminent, with Solana targeting all-time highs soon.
To support this optimistic view, on-chain metrics paint a promising picture of Solana network activity. Data shared by Ali Martinez It shows that the Solana network is approaching 67 million daily transactions, confirming strong adoption and user engagement. This increased network activity highlights the utility of Solana and strengthens the foundation for sustainable price growth.
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If Solana remains above the $210 level in the coming days, it could lead to a significant rally with increasing bullish momentum. Traders and investors are closely monitoring the asset’s price movement for signs of a decisive move, with a combination of strong technical and sequential indicators pointing to a potential surge to new highs.
Price Action: Liquidity stabilizes at the top
Solana is trading at $210, a key level it has held for several days despite broader market volatility. This price point shows strong demand, but maintaining this level alone will not ignite the next rally. A decisive break above the $240 level is crucial for Solana to regain bullish momentum. This move would signal renewed strength and pave the way for higher price targets.
The crucial intermediate step lies at the $225 level. If Solana can reclaim this level with conviction, it will likely confirm this uptrend and pave the way for further upward momentum. This may attract additional buying interest as traders and investors interpret the move as a sign of strength.
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However, failure to break through these resistance levels may keep Solana within a range and limit his ability to capitalize on the recent support he has established. As market conditions continue to evolve, Solana’s ability to cross these key thresholds will determine whether it moves onto a stronger upward trajectory or remains stuck in the consolidation process.
Featured image by Dall-E, chart from TradingView
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