Solana Gains Momentum but Faces Key Resistance Levels at $166.35 Amid Market Volatility

• Solana sees a 2.16% increase but struggles below key resistance at $166.35.  
• RSI indicates the coin is neither overbought nor oversold, signalling possible instability ahead.  
• Solana’s MACD shows bearish signals, warning of potential downturn if bullish traction does not return.

Solana continues to demonstrate its resilience in the volatile crypto space, as it records a slight gain of 0.35% over the past day, pushing its price to $131.57. The market cap has also seen a reasonable boost of 0.38%, now standing at $61.4 billion, solidifying Solana’s position as the fifth-largest cryptocurrency by market capitalisation.

Trading volume in the last 24 hours has risen by an impressive 96.91%, reaching $2.44 billion, indicating a heightened interest among traders. This uptick in volume reflects the increasing activity in the market, with Solana maintaining a strong presence. The volume-to-market cap ratio sits at 3.94%, highlighting the asset’s liquidity and trading activity relative to its market value.

Source :coinmarketcap

The token’s circulating supply remains at 466.7 million SOL, while the total quantity is recorded at 583.6 million SOL. Notably, the fully diluted market cap, which assumes the maximum supply of the coin, is at $76.79 billion.

Analysing the chart for the past 24 hours, the currency experienced fluctuations in its economy with mixed sentiments. The price reached a high near $136 but faced a downward correction, dipping slightly below $131. However, the asset quickly recovered, stabilising around $132 as of the last update. This pattern indicates ongoing market indecision, with bulls and bears in a tight contest over the direction of the price.

Solana  Shows Signs of Recovery but Faces Key Resistance Levels

The currency, at present selling at $131.27, has gathered a 2.16% expansion on the day. Despite this recent uptick, SOL remains below key resistance levels that could determine its future trajectory.

The long-term chart shows that it has faced a steep decline from its peak of over $200, shedding approximately 87.51% of its price at one point, touching a low near $12.92. However, the coin managed to recover, rebounding by nearly 56.65% from its lowest point, indicating potential bullish momentum. Yet, this recovery still leaves SOL far from its former highs, with the current price action suggesting caution among investors.

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Source : Tradingview   

Technical indicators provide diverse expressions for SOL future rates movement. The Relative Strength Index is currently at 45.87, slightly below the neutral 50 grade, indicating that the trade is neither overbought nor oversold. This suggests that the coin could go either way depending on economic conditions and sentiment. Additionally, the Moving Average Convergence Divergence illustrator is in bearish territory, with the MACD line at -2.92, below the signal contours at -1.71. This divergence suggests a potential downturn if bullish momentum does not materialise soon.

Despite the recent gains, Solana faces an important obstacle at the $166.35 stage, which corresponds to previous support turned opposition. If SOL can smash through this barrier, it may pave the way for further gains, potentially challenging the $200 mark again. However, failure to climb up could see SOL retesting lower support levels, particularly around $89.25, where previous consolidation occurred.

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