Solana price update

Despite SOL’s recent gains, the altcoin is still down 20% over the past month. Trading volume remained steady, as traders are waiting to see what happens before making big moves.

Solana’s price has bounced back over the last 24 hours, trading at $138, up by 5.87%. Even with these gains, the altcoin is facing challenges, struggling to break $140, a key resistance level where sellers continue to push it down. If SOL can move above $140 and maintain that level, it might indicate increasing trader confidence.

Market Struggles: Will the Rally Continue?

While Solana shows signs of recovery, some metrics suggest caution. Notably, Solana’s trading volume surged by 130.42% to $3.33 billion, indicating higher buying and selling activity. Additionally, the total money in Solana Futures reached $5.25 billion, up 11.01%, signifying increased risk-taking in leveraged trades.

An increase in open interest can either support price growth or lead to sharp corrections during liquidation events. Meanwhile, Solana’s RSI is at 67, placing it in a neutral zone. Although it’s not overbought, it is close to levels where selling pressure might rise. An RSI above 70 could signal overbought conditions, risking a price drop. Alternatively, if the RSI stabilizes or declines, it might lead to a pause before the next price movement.

Active Users Supporting the Price

A critical factor affecting Solana’s price is network activity. Active wallets fell to 1 million on March 20, then jumped to 3 million by March 23. Increasing user numbers can enhance demand, supporting price stability. New wallet creation also dipped significantly around March 19-20 but rebounded in recent days.

Future Outlook for SOL

For Solana to continue its upward trajectory, it needs to break past the $140 mark supported by strong trading volume. While the 130% trading volume increase is promising, a slowdown in buyer activity could hinder SOL’s ability to maintain its current price, possibly resulting in a decline.

The next few days are crucial. If traders keep participating, the RSI increases, and Solana user activity grows, SOL’s price could rise towards the next resistance level. Conversely, any drop in activity could lead to selling pressure that pushes it lower.