Solana, the popular cryptocurrency, has seen a significant increase in trading volume of 64% within the last 24 hours. This surge in activity has caught the attention of analysts who are predicting a bullish potential and have set their sights on a $250 target.
In the middle of May, Solana reached its highest point in a month and a half, hitting $188.8. However, the market has experienced some volatility since then. The last week of May was dominated by bearish sentiments, resulting in a 1% decline for SOL. Despite this dip, the trading volume has seen a considerable increase, indicating a heightened level of market activity. Over the past week, SOL has decreased by 1.68%, but it has still managed to maintain an overall resilience with a 20% increase over the course of the month.
Solana has been the top performer in the cryptocurrency market over the past year, largely due to its vibrant memecoin ecosystem. However, there has been a noticeable decline in social volume. Even with the involvement of celebrities like Caitlyn Jenner launching memecoins on the Solana blockchain, these ventures have not had a significant impact on SOL’s price.
The derivatives market for SOL is showing signs of both increasing interest and declining trading volumes, indicating a cautious yet engaged trading environment. Additionally, the Total Value Locked (TVL) in Solana currently stands at $4.807 billion according to DeFi Llama.
Analysts are pointing out a strong uptrend in Solana’s performance, suggesting the potential for a bullish phase. If the momentum continues, it is likely that SOL will break the $170 resistance level and potentially even surpass $200, with a target of $250 in the near future.
On the other hand, if market sentiment takes a negative turn, SOL may find support at $160. Further downward trends could result in prices dropping to $155, signaling a bearish market phase.
From a technical standpoint, the daily chart indicates a bearish trend for SOL, with the 9-day Exponential Moving Average (EMA) positioned at $166.33. The Relative Strength Index (RSI) currently sits at 51, suggesting a neutral market stance.
Overall, Solana traders are advised to remain composed and closely monitor the market as it continues to show potential for both bullish and bearish phases.
Source: TradingView