Solana faced higher volatility yesterday, falling 7% after the Federal Reserve announced a 25 basis point rate cut and fewer cuts projected for 2024. Despite the selloff, Solana's price action remained stable as it managed to stay above a critical support level, reinforcing confidence in its 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 daily transactions on Solana's network has increased to nearly 67 million, reflecting growing adoption and stable network activity. This strong transaction volume highlights Solana's position as a leading blockchain platform, with developers and users continuing to rely on scalability and efficiency.
Analysts recommend holding above its key support level he could set up SOL for a strong reboundespecially if the wider market conditions are stable. The increase in activity on the chain adds to this bullish outlook, indicating that long-term fundamentals remain intact.
Solana holds prime demand
Solana is showing resilience in the face of market turbulence, holding above key demand levels around $210 after yesterday's sell-off caused by the Federal Reserve's policy announcements. This critical support level reinforces bullish sentiment for the asset, with many analysts eyeing a breakout on the horizon.
Lead analyst Jelle recently made a strong recommendation technical analysis of Xnoting that Solana successfully broke through the lows, maintained its position above monthly and weekly support levels, and continued to trade within the pattern that to fall According to Jelle, this arrangement suggests a breakout is imminent, with Solana aiming for new all-time highs soon.
Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana's network operations. Ali Martinez shared data showing Solana's network close to 67 million daily transactions, underpinning strong adoption and customer engagement. This increased network activity highlights Solana's utility and strengthens the foundation for sustainable price growth.
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If Solana holds above the $210 level in the coming days, it could trigger a major rally as a supportive trend builds. Traders and investors are closely monitoring the asset's price action for signs of a definite move, with the combination of strong technical and on-chain indicators pointing to a possible rise to new heights.
Price Action: Liquidity resting above
Solana is trading at $210, a key level it has held for several days despite broader market volatility. This price point indicates strong demand, but holding this level alone will not ignite the next collection. A decisive push above $240 is essential for Solana to regain bullish momentum. This move would signal renewed strength and pave the way for higher price targets.
A crucial intermediate step is at the $225 mark. If Solana can regain this level with conviction, it would likely confirm a supportive move and set the stage for a move higher. This could attract additional buying interest as traders and investors interpret the move as a sign of strength.
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Failure to break above these resistance levels, however, could keep Solana range-bound and limit his ability to capitalize on the support he has recently established. As market conditions continue to evolve, Solana's ability to push past these key thresholds will determine whether it moves into a stronger uptrend or remains stuck. the confirmation.
Featured image from Dall-E, chart from TradingView
