Solana Price Shows Short-Term Strength, But Market Struggles Persist

Solana Price Bounces Back: Can It Break $140?

Solana Price– Solana (SOL) has bounced back over the last 24 hours, trading at $138, reflecting a 5.87% increase. However, despite this recovery, the cryptocurrency is still down 20% for the month, signaling that the market remains volatile. Solana’s price showed resilience, bouncing off a low of $128.49, but it now faces challenges at the $140 resistance level.

Although Solana’s price has shown some short-term strength, it is struggling to break the $140 mark, where selling pressure has been consistent. If SOL manages to sustain above $140, it could indicate a more positive sentiment from traders.

Solana’s trading volume surged by 130.42%, reaching $3.33 billion, suggesting an increase in market activity. More traders are betting on the future price of Solana (SOL), with the total money in Solana Futures rising to $5.25 billion, a gain of 11.01%. This could indicate a strong interest in leveraged trades, but it also raises the risk of sharp corrections if liquidations occur.

RSI Indicates Neutral Market Conditions

CryptoQuant’s data indicates that Solana’s Relative Strength Index (RSI) stands at 67, signaling a neutral market condition. While not overbought yet, it is approaching a point where selling pressure could increase. If the RSI crosses 70, it could signal that Solana (SOL) is overbought, potentially leading to a short-term price drop.

One important factor supporting Solana’s price is the activity on its network. Active wallets dropped to 1 million on March 20 but surged to 3 million by March 23. More active users suggest higher demand, which can help sustain Solana’s price momentum. Additionally, new wallet creation dropped in mid-March but rebounded recently, indicating renewed interest.

What’s Next for Solana?

For Solana to continue its upward trend, it needs to break above the $140 resistance level with sustained trading volume. If the momentum continues, the next few days will be crucial for SOL to either hold strong or face selling pressure. The future of Solana’s price will depend on how active the traders remain and how many more users engage with the network.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.