Solana (SOL) Price Rebound Can End Here, This Is Why

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As a seasoned analyst with over two decades of experience in the volatile world of cryptocurrencies, I must say that Solana (SOL) seems to be facing a challenging phase in this ongoing bullish cycle. Having closely observed several market cycles, I can’t help but notice the parallels between SOL’s current struggle and the classic case of a marathon runner who pushes too hard at the start, only to hit a wall towards the end.

It seems that Solana (SOL), often referred to as a potential competitor to Ethereum, is approaching its peak during this current bullish trend. Over the past week, this cryptocurrency, which holds the sixth position in market capitalization with a value of approximately $95.25 billion, has found it challenging to sustain itself above the $200 support zone.

Solana’s struggle at price stability

Experts predict that the coin might have reached its peak during this current bull market trend, as data from CoinMarketCap shows a substantial decrease in trading volume by 18.96%, down to $3.32 billion. This significant drop in activity may reflect a lack of investor trust, which could potentially hinder SOL’s efforts to challenge new price milestones.

Solana seems stuck in a descending trend as bearish influences work to prevent it from reaching new highs. Each price decrease over the past 30 days has added to its instability and the likelihood of returning to its earlier levels appears slim. Instead, SOL has settled at a support level below its previous peaks.

Market analysts suggest that due to minimal trading activity, it could be challenging for Solana to experience a pullback. However, a change in trading volume is essential for the price to overcome the $200 resistance barrier.

Despite attaining a new all-time high (ATH) in daily transactions with 72.8 million, this has not helped boost the price metric. Although daily transactions soared by 97.8%, it was not accompanied by a corresponding uptick in active addresses. This limited SOL’s price growth.

Any optimism?

Some market experts believe that the reason Solana hasn’t reached new high prices is because investor interest has moved elsewhere, as they look for the next lucrative investment opportunity during this ongoing bullish trend. Market movements imply that traders are on the hunt for profitable ventures to jump into and maximize their returns while the market continues its upward swing.

This growth in development has led to an increase in demand for SOL, potentially putting pressure on sellers. Despite this, crypto analyst Henrik Zeberg maintains a positive outlook towards SOL. However, current market indicators have yet to align with his optimism. Zeberg suggests that Solana is currently in a phase of consolidation and may see a breakout in the near future.

The last few trading days will determine if Solana still has the momentum to post a rebound.

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2024-12-25 19:13