Solana Price Analysis: What’s Keeping SOL Below $200?

by

As a seasoned researcher who has weathered numerous market cycles, I find myself cautiously optimistic about Solana (SOL) but not convinced that it will break above $200 anytime soon. After analyzing various factors such as network activity, development activity, and SOL’s price action, it seems the altcoin remains trapped below the $200 psychological level for a reason.

The price of Solana has surged over the past three days, rising from $127 to $147, representing a 16.6% increase. This upward trend aligns with the broader market’s rise following the US Fed’s decision to lower interest rates by 0.5%. The question remains: will this positive momentum propel SOL above $200, or will sellers attempt another price drop?

Solana Price Analysis: Why SOL Remains Trapped Below $200

As a researcher, I’ve been observing the trajectory of Solana’s price and it appears to be moving laterally, hovering just below the significant $200 psychological mark for more than half a year now. This prolonged consolidation has seen three unsuccessful attempts by SOL buyers to push past the resistance barrier, suggesting a robust supply zone that’s proving challenging to overcome. Here are four potential reasons why this altcoin seems to be struggling to gather the momentum required for a breakthrough beyond $200.

For this detailed analysis, check out the top Layer 1 crypto article.

  • Low Probability of Solana ETF Approval Dampens Market Hopes
  • Solana Meme Coin Boom Boosts Network Activity
  • Development Activity Decline Threatens Bullish Prospects
  • Solana Price Analysis: Key Support Levels Under Pressure

Low Probability of Solana ETF Approval Dampens Market Hopes

As a researcher, I’ve been closely monitoring the developments regarding a potential Solana Exchange Traded Fund (ETF). Based on recent data from Polymarket, the chances of this happening in 2024 have significantly dwindled, now standing at a mere 3%.

Solana Price Analysis: What’s Keeping SOL Below $200?

Solana Meme Coin Boom Boosts Network Activity

During the recent meme trend, there was a significant increase in activity and earnings on the SOL blockchain. As reported by Dune Analytics, the total revenue generated by the Solana Meme Coin Generator called Pump Fun reached an impressive $107,354,482 at the time of reporting. The dwindling attention towards meme-based cryptocurrencies has had a substantial influence on network development, making a recovery essential to instigating another bull market.

Development Activity Decline Threatens Bullish Prospects

Beginning August 2024, Solana’s development activity has significantly decreased to about 159, a level that suggests a potential slowdown in innovation and advancements within the network. This decrease is an important factor to consider as it may indicate reduced developer activity and lower blockchain engagement, potentially leading to a less favorable forecast for SOL prices. The following chart from Santiment could suggest this stagnation in development activity.

Solana Price Analysis: What’s Keeping SOL Below $200?

Solana Price Analysis: Key Support Levels Under Pressure

According to experienced trader Peter Brandt’s Solana price analysis, the significant level of $129 is a vital area of support during the current period of price consolidation. If this support level fails, increased selling activity could cause the Solana price to drop towards the next potential support at $80.

In this particular region, the price of $SOL appears to be finding a supportive base. If this support fails, it could potentially trigger a continuation of a larger pattern aiming for approximately $80 and a possible change in price.
— Peter Brandt (@PeterLBrandt) September 18, 2024

Consequently, the possible outcome stemming from a rectangle formation might substantially influence the forecast for Solana’s price if it surpasses the $200 mark.

Read More

2024-09-20 18:20