Is it Time to Buy or Sell SOL This Week ?

Solana’s Bullish Momentum Struggles to Regain Traction

Despite strong fundamental momentum, the price of Solana (SOL) has been struggling to reconnect with its bullish trend in recent days. Although open interest in SOL futures contracts has surged by 15%, the token is consolidating around $160, well below its recent high of $167.

This consolidation indicates that the path to $200 remains challenging for Solana. However, investors should keep a close eye on upcoming developments, as the network’s fundamental indicators remain exceptionally strong.

Solana’s Fundamentals Remain Robust

Data indeed shows that activity on the Solana blockchain is expanding rapidly. Transaction volume has climbed 27% over the past 7 days, exceeding 596 million transactions – more than the 10 other major chains combined.

Similarly, the number of active addresses has increased by nearly 5% to reach 25.5 million. Total network fees have also jumped by 24%, signaling increased platform usage.

Beyond this, the stablecoin sector on Solana is experiencing strong growth. The number of dedicated addresses has exploded by 40% in 30 days, while adjusted monthly volume reached $108 billion. The RWA sector has also surged by 140% this year on Solana.

Bullish/Bearish Showdown Among Solana Traders

On the technical front, SOL is currently oscillating within a large symmetrical triangle, with converging upper and lower trendlines. This pattern suggests that the current consolidation could lead to an imminent breakout.

In the short term, technical indicators such as the relative strength index and stochastic oscillator are trending downward, reflecting a temporary loss of bullish momentum. However, SOL’s position near its 50 and 200-day exponential moving averages maintains a positive medium-term bias. A clear breakout above its 200-day MA at $165 would confirm the bullish bias.

As explained in our previous article, a short-term retracement to $155 cannot be ruled out. But in the medium term, SOL points toward an explosive return to $280 in the coming weeks.

In summary, although Solana faces short-term resistance, its fundamentals remain solid. Investors should closely monitor price evolution and network developments to adjust their strategies accordingly.

A bullish breakout from the triangle could indeed pave the way for a new rally toward $200 and subsequently $280. Conversely, a bearish breakdown would challenge the positive medium-term scenario. Caution therefore remains essential while waiting for a clearer trend.

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