- Solana’s network activity has increased and has a two-sided impact
- SOL has flipped the consolidation ranges of $160 and $128, approaching back to the support zone.
- Bulls fighting to pull the SOL to $200
- Price action shows a neutral to bullish trend if the price can hold above $160, more red expected candles if failed
Solana the multifunctional blockchain tops in Defi services, has experienced an increased network activity. The blockchain ranks 2nd with a Daily Active Users (DAU) of 1.6 million, first is the NEAR protocol
Despite the network activity increase price is down –4.2 % in 7 days, failing the correlation of network performance and price. This isn’t the first time with the Solana network, this happened back in April 11 when the daily transaction surged massively, but the price refused to go ahead and dropped to 20%.
The current network performance is a significant indicator to decide the trend ahead.
Solana(SOL) Technichal Analysis
Solana(SOL) started the month with sideway trading, breaking the consolidation of $160 on 15th May, followed by an uptrend and correction at $168.3, today. The price action couldn’t break out of the bearish zone and is now approaching the $160 zone with 24-hour trading volume down to 15%.
At press time SOL/USDT changing hands at $163.87, trading above all major SMA(Moving averages) gives strength to bulls, with other oscillators, and volatility movement is neutral.
The trend for Solana is bullish but inflecting. RSI reading at 40.73 is in the downtrend indicating price accumulation will begin soon. The MACD is still above the MACD line consolidating a strong hold near support zones.
Trade Setup: Calm to Join The Storm
With immediate resistance at $183 and Support levels at $160 and $147, the price action is expected to move neutral for a while. Traders have a buying opportunity in the zone above $150, SL at $147, and TP $185.
The pullback resulted in forming a downward channel creating a buying dip, an opportunity for traders to enter. The price may break out anytime soon, look for the nearest support zone and wait for the uptrend to resume.
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