Solana (SOL) is up by over 18% on the monthly time frame. However, the last few days have been shaky with the coin’s bullish momentum slowing down. Notably, Solana dipped from $152, to below the psychological $150 mark going down to $147 level. However, the coin seems to have found footing around this level and is now in a consolidation phase.
On the other hand, the Solana ecosystem still tops other chains in decentralized exchange (DEX) volume. This strong performance strengthens Solana’s position in the broader ecosystem.
SOL Finds Support — Bullish Momentum Still Intact?
Over the last 4 days, the price of SOL dipped by 3.20% as per the daily chart on TradingView. However, the coin has found support around the $147 and is now moving in a range-bound zone. The consolidation between the $145 and $152 is thus a make-or-break moment for Solana.
Breaking out of the consolidation zone is a crucial determinant of where the price will head next. A break below $145 could spark bearish momentum. In contrast, a surge past the resistance at $152 could fuel the bullish momentum experienced earlier.
In fact, Solana’s technical indicators show that bullish momentum still persists. The Relative Strength Index (RSI), for instance, sits at 61.50 up from 59.95 recorded yesterday. The current RSI reading thus depicts bullish momentum. However, a surge to the overbought level at 70 could trigger a rebound.
On the other hand, the MACD line is above the signal line confirming that the Solana bullish momentum holds. However, there seems to be an incoming bearish crossover in the near future. The weakening histogram bars also show that the momentum is weakening. But, in the meantime, the momentum is still bullish.
SOL’s DEX Volume Surges by 44% over the Last 7 Days
Solana has also continued its DEX volume dominance over other chains. According to data by DefiLlama, SOL recorded a total of $21.29 billion in trading volume on the weekly timeframe. This marks a 44.07% surge in the same timeframe and cements Solana’s position as the leading chain in DEX volume.
Additionally, the SOL has recorded $3.397 billion in DEX volume over the last 24 hours. Solana currently contributes a whooping 37.66% of the total DEX trading volume.
Coming in second is Ethereum contributing 18.31% followed by BNB Smart Chain (BSC) with a 10.92% share of the total DEX volume. Base, Sui and Tron follow in that order contributing 7.53%, 5.52% and 3.13%, respectively.
Besides DEX volume, Solana also dominates in app revenue and fees. DefiLlama data shows that six of the top 10 chains and protocols (excluding USDT and USDC) are Solana-based. Pump and Jito are topping the charge.
SOL’s Breakout Could Spark Potential 21% Upside Rally
Solana’s short-term Exponential Moving Average (EMA) shows a bullish setup. Notably, the EMA 20 sits at $140.42 while the EMA 50 sits at $139.74, hence a bullish setup. As per the chart on TradingView, Solana is currently trading above both lines, but the EMA 20 is slightly above the EMA 50.
This setup suggests that buyers are currently in control. If buyers continue to show strength, this could push the price of SOL above the resistance depicted by the EMA 100 ($152.06). A breach of this level would further push the price towards the next resistance at $157.25. Further upside past EMA 200 ($162.40) could spark a 21% bullish rally towards $180.87 resistance.
On the other hand, failure to clear the resistance at $152 could result in bounce towards the downside. SOL currently has support around $140.42 which if breached could see the price dip to $133.86. In a deeper dive, SOL might crash towards $123.36 confirming a bearish rally with a potential wipe-out of recent gains.
