Solana Price Analysis: Factors Keeping SOL Under $200
Highlights
- Solana price analysis shows a rectangle pattern drives the current consolidation.
- With only a 3% chance of Solana's ETF being approved, institutional demand remains weak, adding to the challenges of pushing SOL above $200.
- Development activity on Solana has declined since August 2024, which has slowed innovation and reduced blockchain engagement.
This week, the Solana price analysis showcased an upright rally from $128.9 to $148, accounting for 15% growth. This bullish reversal likely followed the crypto market optimism surrounding the rate cut from the US Federal Reserve. Will the macroeconomic change be enough to push the SOL price beyond $200, or are sellers waiting for a counterattack?
Solana Price Analysis: Why SOL Remains Trapped Below $200
The Solana price analysis shows a sideways trend below the $200 psychological level for over six months now. This consolidation displayed three failures by SOL buyers to surpass the overhead barrier, indicating an intense supply zone. Here are four reasons why this altcoin struggles to build sufficient momentum for a $200 breakout.
For this detailed analysis, check out the top Layer 1 crypto article.
Low Probability of Solana ETF Approval Dampens Market Hopes
According to data from Polymarket, the odds of a Solana ETF being approved in 2024 have plummeted to just 3%. Following the success of Bitcoin and Ethereum spot ETFs, Solana was considered the next-best candidate for a U.S.-based crypto ETF. The potential approval would give institutions’ investment better access to this asset and drive higher demand for SOL coins. However, as the SEC continues to resist greenlighting new ETFs, the Solana price analysis could struggle to rally above $200.
Solana Meme Coin Boom Boosts Network Activity
The SOL blockchain witnessed a notable surge in network activity and revenue during the past meme cycle. According to Dune Analytics data, the Solana Meme coin generator Pump Fun has accumulated $107,354,482 in total revenue by the press time. The declining interest in the meme cryptocurrency sector has significantly impacted network progress, and therefore, the revival is crucial to triggering a bull run.
Development Activity Decline Threatens Bullish Prospects
Since August 2024, Solana’s development activity has recorded a notable decline to reach a current sitting of 159. Development activity is a key metric that reflects the level of innovation and improvements on the network. The chart below from Santiment may reflect stalled developer activity and reduced blockchain engagement, negatively impacting the SOL price prediction.
Solana Price Analysis: Key Support Levels Under Pressure
The Solana price analysis from veteran trader Peter Brandt highlights the $129 as a crucial support zone amid the current consolidation pattern. If the support breaks, the selling pressure could accelerate and plunge the SOL price to $80 support.
Observation about $SOL
In an area of support. If support gives way, then large rectangle will complete and point toward $80 and change pic.twitter.com/66L6We7ewZ— Peter Brandt (@PeterLBrandt) September 18, 2024
Thus, the potential out of a rectangle pattern could significantly impact the Solana price prediction for a $200 breakout.
Frequently Asked Questions (FAQs)
1. Why is Solana (SOL) struggling to break the $200 level?
2. What is the impact of the Solana ETF approval odds on its price?
3. What are the key support levels for Solana’s price?
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