SOL Price Prediction As Trading Volume Explodes 150%: Solana Breaking Out To $200?

SOL price prediction: In the wee hours of Tuesday morning, Bitcoin price slipped below a crucial support level, resulting in a market-wide crash that saw Solana’s price drop to $127.95. This is the lowest price SOL has reached since early May 2024.

The price of Solana hovered around $137 during European business hours on Tuesday, a 7.5% decrease in the last 24 hours, per CoinGecko.

SOL Price Prediction: Bulls Maintain Form Despite Selling Pressure

SOL price had previously been trending inside a symmetrical triangle. This type of market structure can resolve in either direction, but with some influence, has a higher probability of resolving in a given direction. Solana’s preceding trend was to the upside, which may be a major factor in determining how the symmetrical triangle resolves.

Solana’s price action is trending below the 50-day but above the 200-day simple moving averages (SMA), showing there may be some struggle between the bulls and the bears. While the 200-day SMA provides support, the 50-day SMA provides resistance. The former is expected to hold ground since it supports the uptrend.

A break to the upside from the symmetrical triangle may result in a 63% rally to $292. We can expect some resistance at the 50-day SMA ($157), $196, $228, and $267. On the flip side, a downward scenario may find robust support around $126. Fairly strong support levels also exist around $87 and $56.  

Solana Trading Volume Rallies 153% Despite Market Crash

Despite the prevailing market conditions, the 24-hour trading volume of Solana skyrocketed by 153%, showing increased investor interest and a potential price surge soon.

This burst of activity on the network is supported by statistics, as the number of active addresses on the network hit an all-time high of 41.65 million in May. As of June 18, 2024, active addresses are already halfway to those of the previous month, per The Block.

Coinalyze shows that the aggregated Solana Open Interest (OI) has been falling since June 4, 2024, indicating that money has been flowing out of the asset. This metric is synonymous with the entire crypto industry, which has been experiencing a general drop in value. Nevertheless, SOL OI shows strong support around the $1.36B level, from which point money may begin flowing back into the asset once more.  

Meanwhile, crypto users remain with question marks as the Bitcoin Fear & Greed Index indicates ‘Greed’ for over a month now, despite falling crypto prices.

Bottom Line

Solana price has showcased impressive resilience in the heat of a general market crash. Despite initially crashing 11%, the asset recovered quickly and maintained its bullish market structure.

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