Solana Price Struggles at $118: Is a Market Recovery on the Horizon?

Solana Price Drops Below $118: Will DEX Growth and Buybacks Spark a Recovery?

Solana Price – Since March 2024, Solana’s (SOL) price has been struggling to reclaim the $118 level, which has acted as a crucial support zone. Despite recent attempts to stabilize around $110 and $100, the price remains vulnerable below $115.92. The MACD line and its Signal line are both currently below zero, with values of -6.34 and -5.93, respectively. This indicates increased selling pressure and the possibility of further price declines if bearish crossover continues. However, the positive momentum from the histogram suggests a slowdown in selling forces, which could provide opportunities for market stabilization or recovery.

Binance’s Buyback May Impact SOL’s Future Movements

A significant factor influencing SOL’s price action is Binance’s ongoing buyback operations. According to Marty Party’s post on X, Binance, through Wintermute, recently initiated SOL purchases, which may signal a potential market floor at $118. If SOL successfully reclaims the $118 support level, it could trigger a rally towards $130 or even higher targets around $150. However, the recovery hinges on broader market sentiment and confidence, especially following the strategic liquidation of long positions that pushed SOL to $120. If bullish conditions don’t materialize, another price drop could occur.

Solana’s DEX Volume Shows Strength

On a positive note, Solana has been performing well in daily DEX volume, surpassing Ethereum and Binance Smart Chain with $2.417 billion in daily transactions. Additionally, over $550 million has been bridged to Solana, including $400 million from Ethereum alone. The growing DEX usage and the launch of over 1.15 million new tokens on Solana could spark further demand, pushing SOL’s price towards the $130 zone.

SOL Faces Critical Decision Point

As the market continues to evolve, the $118 support level remains pivotal. If Solana can reclaim this level, it might trigger a bullish reversal, but failure to do so could see SOL slide further, possibly down to $100. Traders will be watching closely for any signs of momentum shift.

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.