Solana plunges 8%: Will the $100 support level break?
Solana down 8% after Fed news. Can bulls regain $135 despite $4B DEX volume? Find out the latest Solana price analysis.
A Brutal Correction Despite Record On-Chain Activity
The crypto market reacted coldly to the latest macroeconomic announcements. Following the Fed’s decision to leave interest rates unchanged, Solana’s price initiated a violent retracement, losing 8% of its value to settle around the $115 zone. This short-term bearish movement reflects investor uncertainty regarding monetary policy, triggering liquidations on long positions.
However, fundamental data analysis tells a completely different story. While the price drops, network usage is soaring. Solana recorded a trading volume on its decentralized exchanges (DEX) approaching $4 billion. This divergence between price and volume is often closely monitored by analysts: a price drop accompanied by massive network activity can sometimes signal capitulation before a rebound, or conversely, massive distribution by whales.
Solana vs Ethereum: The Battle for Volume Continues
A striking fact during this volatile period: Solana once again surpassed Ethereum in terms of daily activity. This performance underscores the resilience of the Solana ecosystem which, despite selling pressure on its native token, continues to attract traders and DeFi protocols. This dynamism is a key indicator for smart money seeking to identify the most actively used blockchains, beyond pure speculation.
For investors, this disconnect between adoption (rising) and price (falling) creates a complex analytical opportunity. If the network is more active than ever, why isn’t the price following? The answer likely lies in the overall market sentiment, currently risk-averse. However, if fundamentals remain this solid, an accumulation phase could be underway in the current zone, setting the stage for the next cycle.
Can Solana (SOL) Reclaim $135?
The question is now technical: do the bulls have the necessary strength to defend the current support and initiate a rally toward $135? To validate a trend reversal, SOL must break free from selling pressure and transform the $115-120 zone into a solid floor.
Currently, SOL has bounced in a demand zone and the daily order block. If it maintains above $105, SOL could attempt to reclaim its trendline at $126. If SOL transforms this resistance into support, then $135 will be the most likely next step.
Conversely, a loss of $105 would plunge SOL into a confirmed bearish phase and SOL would drop below $100.
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Charles Ledoux
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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