Solana (SOL) Price Jumps Back to $140 Despite Network Congestion Issues

Following a temporary setback, the Solana (SOL) price is resuming its upward momentum, aiming to surpass the critical resistance level of $140. Currently, SOL is trading 7% higher at $138, boasting a market capitalization of $61.4 billion. Notably, despite congestion challenges on the Solana network due to increased trading activity, SOL remains resilient in its ascent

Solana Network Congestion Issues

Recent data from DeFiLlama indicates a remarkable surge in Decentralized Exchange (DEX) trading volume on the Solana network from March 3 to March 6. For four consecutive days, trading volume has surpassed $2 billion, with a record-breaking $2.85 billion in trading volume recorded on March 5 alone, marking a new single-day high.

This surge in trading activity coincides with increased on-chain transactions, potentially contributing to the current congestion experienced on the Solana network. The heightened activity also underscores growing interest and engagement within the Solana ecosystem.

As a result of this, crypto exchange Binance also announced its decision to suspend Solana withdrawals temporarily on Wednesday, March 6.

SOL Price Action

Examining SOL’s price chart reveals a compelling narrative. The cryptocurrency has displayed a strong uptrend, characterized by consistent higher lows and higher highs, a bullish signal in market technical analysis. Furthermore, the alignment of moving averages indicates sustained buying interest, with shorter-term averages surpassing longer-term ones—a configuration typically associated with ongoing bullish sentiment.

Currently positioned around the $135 level, SOL encounters immediate resistance, the breach of which could spark a new rally. Conversely, support levels are identified near $115 and $104, historically acting as springboards for price rebounds. Importantly, recent upward price movements have been accompanied by significant trading volume, indicating active market participation and reinforcing a positive outlook.

As the broader market experiences a shift, the potential for Solana’s upward momentum becomes increasingly promising. Investors are turning to alternatives to Ethereum’s high gas fees and network congestion, and Solana’s scalability and cost-effectiveness make it an attractive option for both developers and investors alike. This favorable positioning could contribute to further price increases for Solana in the near future.