As a researcher delving into the burgeoning landscape of AI-focused cryptocurrencies, I find myself closely observing Solana’s trajectory in the digital currency market. In the past 24 hours, Solana ($196.3) has displayed a modest volatility of 4.6%. Despite this minor fluctuation, its overall value remains high with a market cap of $95.06 billion. Over the last week, it’s worth noting that the sixth largest cryptocurrency has experienced a slight dip of 4.49%, but currently holds a market cap of approximately $90.4 billion. The question on my mind is: Is Solana gearing up for a parabolic surge in the ongoing crypto competition?
Solana Price Analysis
Despite the improving market conditions, the Solana price is finding it difficult to surpass the $200 mark. On a day-to-day chart, the Solana price movement indicates a retreat towards its local support trendline, following a strong rejection of lower prices at approximately $169.22 on January 13th.
On Solana, the currency consistently stayed above its 200 Exponential Moving Average (EMA), ending the day at roughly $182. At this moment, the SOL token is hovering slightly over its local support trendline, trading around $186.42 in the market.
With Solana approaching its 200 Exponential Moving Average (EMA), the Daily Relative Strength Index (RSI) shows a bullish divergence. This suggests that there’s an increased likelihood for the SOL price to rebound towards the higher resistance trend line above it.
SOL Price Targets
The two lines showing the trend, when they meet, create a pattern called a ‘rising wedge’. This pattern will continue as long as the price stays within the boundaries. At the moment, the lowest price support for Solana (SOL) is where the 20-day and 100-day Moving Averages intersect, which is currently around $195.
Additionally, the $200 mark and the $215 peak serve as important resistance levels. Once these hurdles are surpassed, it’s expected that Solana will move steadily towards the upper trendline around $270.
On the flip side, the breakdown of the local support trendline will likely retest the $157 mark.
Potential Upside and Downside Risks
Given that Solana’s trading is close to its underlying trendline of support, the potential for price drops stays fairly high. According to a recent post by analyst Ali Martinez on various platforms, a specific technical tool is suggesting a selling opportunity.
The TD Sequential signal suggests it might be time to consider selling Bitcoin, Ethereum, XRP, and Solana on the 4-hour charts, as it appears that a possible price adjustment may occur in the cryptocurrency market prior to the release of the CPI report.
— Ali (@ali_charts) January 15, 2025
Based on the 4-hour charts, the TD Sequential indicator suggests that Solana may experience a possible price adjustment. This sell alert preceding the publication of CPI data implies a rise in market turbulence could be imminent.
DEX Volume Growth on Solana Network
As a researcher delving into the world of blockchain, I’ve noticed an intriguing trend in the Solana network amidst the turbulence in SOL token prices and general market volatility. Remarkably, the volume of transactions on Decentralized Exchanges (DEXs) on this network has seen significant growth over the past two and a half months, surpassing the total volume recorded in the preceding eight months of 2024. This rapid increase in DEX trading activity on Solana is undeniably noteworthy.
🚀 The trading volume for decentralized exchanges (DEX) on Solana has surpassed what it achieved over eight months in 2024, within just two and a half months! 🌐
Don’t fade $SOL ✌️
— Crypto Rand (@crypto_rand) January 15, 2025
Over the last day, the overall amount has accumulated to approximately $3.542 billion, even though there was a decrease of 9.97% in the past week.
Solana Outpaces Ethereum and Base Ecosystems
In mid-January 2025, the trading volume on Solana’s decentralized exchange surpassed both Ethereum and the overall volume of the Base ecosystem. Over a span of 15 days, Solana’s DEX trading volume reached an impressive $60.633 billion, while Ethereum recorded only $32.913 billion and the entire Base ecosystem managed $24.848 billion in trading volume.
🔔BREAKING NEWS: In the initial half of January 2025, Solana leads DeFi (Decentralized Finance) trading volume, surpassing the total volume of Ethereum and Base combined.
— SolanaFloor (@SolanaFloor) January 15, 2025
Over time, as trading volumes on the Decentralized Exchange (DEX) network built on Solana increase, it’s anticipated that the desire for Solana (SOL) will also escalate. This growing interest in Solana may lead to an upward trend in its market price, potentially reaching a new peak point.
With Solana’s DEX trading volume surpassing rivals and network activity increasing, a positive trend might push prices to record highs. Yet, traders need to keep an eye on crucial support points and heed any sell signals from technical analysis tools to mitigate possible downside threats.
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2025-01-15 17:13