- Solana pullback near $175 suggests the potential for price reversal.
- Network activity remains strong despite the recent price decline.
Solana (SOL) has been in the spotlight due to its notable price movements and robust network activity. Currently trading at $193, SOL has surged 5% in the past 24 hours despite a 7% decline in trading volume. Over the past week, however, it has dropped 12%, with its monthly low of $175 recorded just four days ago. The token remains 27% below its all-time high of $264.
The recent pullback aligns with the 61.8% Fibonacci retracement level, measured from September’s lows, suggesting a possible price reversal. Historically, reversals often occur at this “golden ratio” level, and SOL’s support at $175 could pave the way for recovery. However, a deviation down to $160 remains a possibility.
Meanwhile, On-chain data reflects a mixed sentiment. While Solana’s funding rates turned negative for the first time in six weeks, signalling bearish sentiment, derivatives data reveals that 82% of top traders on Binance remain bullish. Solana’s network activity paints a different picture: its total value locked (TVL) recently reached a 2024 high of 55.37 million SOL, and daily transaction volume peaked at 67.77 million, the highest in 11 months.
SOL To Go Down Below $170?
Technical analysis indicates that SOL is hovering around a key support zone of $173-$176. A bullish reversal could target resistance levels at $193.20, $209.93, and potentially $230.64. However, failure to hold this support could push prices toward $152.65.
In conclusion, Solana’s current price levels and network activity suggest a critical juncture for the token. With signs of bearish exhaustion and robust on-chain metrics, a recovery appears likely, but market participants remain cautious about potential downside risks.
