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Yesterday, Solana faced increased volatility, falling 7% after the Federal Reserve announced a 25 basis point rate cut, reducing expected rate cuts in 2024. Despite the decline, Solana's price action remained resilient and was able to sustain above key support levels. It strengthens confidence in our ability to weather macroeconomic changes.
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While the market reacted to the Fed’s cautious tone, Solana’s on-chain metrics tell a more optimistic story. The number of transactions per day on the Solana network has skyrocketed, approaching 67 million, reflecting increased adoption and sustained network activity. This robust transaction volume highlights Solana's status as a leading blockchain platform, where developers and users continue to trust its scalability and efficiency.
Analysts suggest that SOL could be poised for a strong rebound if it sustains above key support levels, especially if broader market conditions stabilize. Increased on-chain activity further strengthens this bullish outlook, indicating that long-term fundamentals remain intact.
Solana retention key demand
Solana has shown resilience in the face of market turmoil, trading above a key demand level near $210 following yesterday's decline due to Federal Reserve policy announcements. This key support level has many analysts eyeing a breakout in the near future, reinforcing bullish sentiment for the asset.
Top analyst Jere recently provided a convincing technical analysis on He pointed out that it continues. According to Jere, this setup suggests a breakout is imminent, with Solana aiming for new highs soon.
Solana successfully hosts monthly/weekly support | Source: Jelle on X
Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana's network activity. Ali Martinez shared data showing the Solana network is approaching 67 million transactions per day, highlighting strong adoption and user engagement. This increased network activity emphasizes Solana's utility and strengthens the foundation for sustained price growth.
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If Solana sustains above the $210 level over the next few days, the bullish momentum could build and trigger a significant rally. Traders and investors are closely monitoring the asset’s price movement for signs of a definitive move, as a combination of strong technical and on-chain indicators point to a possible surge to new highs. .
Price fluctuation: Liquidity is static at the top
Solana is trading at $210 and has maintained this important level for several days despite widespread market volatility. This price range indicates solid demand, but maintaining this level alone will not trigger the next bull market. A decisive push above $240 is essential for Solana to regain bullish momentum. This move would show renewed strength and pave the way for higher price targets.
SOL test related demand | Source: SOLUSDT chart on TradingView
An important intermediate step is at the $225 mark. If Solana can confidently regain this level, it will likely confirm the bullish trend and set the stage for further upward momentum. This could attract further buying interest as traders and investors interpret this move as a signal of strength.
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However, failure to break through these resistance levels could leave Solana's range limited and limit its ability to capitalize on recently established support. As market conditions continue to evolve, Solana's ability to break through these critical thresholds will determine whether it moves into a stronger upward trajectory or remains consolidated.
Featured image from Dall-E, chart from TradingView
