The recent bloodbath in the market has pushed altcoin prices to yearly lows. Solana price was no different, trading at $115, down over 10% at press time. Nonethless, analysts have been hopeful of a reversal in the mid-short term.
If at all the markets recovers and Solana price aims for higher price levels we can see SOL tragetting some key resistances.
Just before the price dump, Solana price had tested a crucial resistance at $135 after bouncing from the $125 demand zone. Analyst Ali Martinez predicted that breaking this level could trigger a rally. However, following BTC’s downtrend Solana price as well as altcoin prices dropeed.
Increasing active addresses and futures interest are strengthening Solana’s bullish momentum. If Solana price makes a comeback crossing $120, it may rise toward $165. However, since at the moment price broke below $120, Solana could easily test the lower $100 support, if the larger market remains bearish.
Solana Price Needs to Clear the Resistance at $125 and $135
Solana price was earlier testing resistance at $135, a key level that could determine its next directional move. This level has provided support in the past and if breached, might see further upside.
According to Ali Martinez, if Solana price is to break through $135 , the subsequent levels to achieve are $144.40 and $165.
Source: Ali Martinez, X
However, if Solana price fails to break through $120 which is the next resistance from the current price levels, it could see a pullback toward $130. This price zone has historically provided support.
Solana Price Technical Indicators Suggest a Possible Breakout
Solana price daily chart shows bullish signals. After bouncing off the $125 support, Solana price formed a morning star pattern, indicating a possible upward move. A bullish engulfing candle followed two Doji candles, further strengthening the potential for a rally.
Source: TradingView
Solana price was below the resistance trendline near $120 at the time of writing. If it breaks through, the next significant resistance levels are $130, $144.40 and $165.20. In the short term, a push past $135 may lead to an upside breakout, while a failure to do so might lead to consolidation.
Rising Network Activity Boosts Solana’s Bullish Sentiment
Solana recently saw network activity which is backing up price action despite the bearish blues in the market. Active addresses on Solana have risen from 2.77 million to 3.3 million in the last two weeks. Analysts noted that this growth in network participation could drive further demand for SOL tokens.
Number of Active Addresses
Besides a constantly growing number of active addresses, there have been certain changes in the transaction volume of Solana. For instance, Solana registered 1.62 billion non-voting transactions and 8.2 billion voting transactions in February.
In March, total vote transaction was recorded at 8.77 billion, although the total non-vote transaction was slightly lower. Such increases suggest that network activity is gradually recovering from recent lows, potentially signaling the start of another upward price movement.
Solana Futures Show Bullish Sentiment
Solana futures experienced increased interest, reflecting growing optimism in the market. Open interest has increased by 1.88% to $ 4.88 billion.
This rising open interest indicates that quantitative speculators have similarly grown in their optimism about Solana’s upward trajectory. According to analysts, it means that the long-to-short ratio has been balanced with 1.0121.
Source: Coinglass
The funding rate, which had turned negative, has also shifted to a positive value of 0.0034%. This supports the sentiment of more traders having long positions, which increases the possibility of a rally.
The growing attention to Solana price futures is another positive catalyst for the altcoin potential rally in the future.
However, with the current price action down bad it seems Solana as well as other altcoins would need more than just string metrics to rally.
