As altcoins gradually bounce back with Bitcoin nearing $105K, will Solana (SOL) price start a breakout rally to the $250 mark?
Solana is holding on to crucial support as the crypto market slowly recovers after a massive correction in the starting hours. Currently trading at $216.95, Solana registers an intraday fall of 0.37%. Despite the slight decline, Solana continues to exhibit strong fundamentals and resilience.
Despite the pullback in the Solana price SOL $216.0 24h volatility: 3.3% Market cap: $103.48 B Vol. 24h: $7.61 B , the network growth records a new all-time high. This milestone highlights the growing adoption and robust activity within the Solana ecosystem. Will this underlying boost in the Solana network result in a breakout rally?
In the 4-hour chart, the Solana price trend reveals a falling-channel pattern. Currently, the SOL price struggles to break past the overhead resistance trendline, signaling a bullish failure at this critical level.
This results in a quick reversal from $226.71 or the 38.20% Fibonacci level. The downfall has reached the 23.60% Fibonacci level but maintains dominance over the $215 psychological mark. Such dominance underscores Solana’s strong support at this critical price zone.
With multiple lower price rejections at this level, the bulls are attempting a comeback. The struggle to reclaim the 23.60% Fibonacci level highlights a crucial crossroads.
The 4-hour RSI line is moving sideways, slightly below the halfway level, maintaining the chances of a bullish comeback. With a bullish divergence, the momentum indicator flashes a slightly bullish signal. This divergence suggests the potential for a short-term upward price movement.
On the bearish front, the 50 and 200 exponential moving average lines in the 4-hour chart have given a death cross-over, signaling a bearish continuation to the $200 psychological milestone.
The Solana network has hit a new all-time high as the broader market recovers from a quick pullback. With daily transactions reaching 66.9 million, it has surpassed all the other chains. This surge in activity underscores Solana’s growing dominance in the blockchain ecosystem.
BREAKING: @Solana daily transactions (non-voted) hit a new all-time high, surpassing all other chains combined.
Transactions: 66.9 million pic.twitter.com/e1RByWQ6Nc
— SolanaFloor (@SolanaFloor) December 18, 2024
However, the transactions include non-voted transactions as well. Along with the increased transactions over the network, Solana has surpassed Ethereum and Binance Smart Chain in terms of DEX trading volume.
With the 24-hour trading volume reaching $5.441 billion, Solana has outperformed Ethereum’s $2.562 billion and Binance Smart Chain’s $2.319 billion. This achievement marks a significant milestone, as Solana’s trading volume exceeds the combined value of Ethereum and BSC.
BREAKING: @Solana surpasses the combined 24-hour DEX trading volume of Ethereum and Binance Smart Chain. pic.twitter.com/fg8BZnsnAR
— SolanaFloor (@SolanaFloor) December 18, 2024
If the outcome is bullish, the uptrend is likely to challenge the confluence of the overhead resistance trendline and the 38.20% Fibonacci level near $226. Further, an extended rally with a bullish breakout could reclaim the $250 mark.
Conversely, closing below the $215 mark will likely result in a retest of $203.27 and put additional pressure on the $200 psychological mark.
In conclusion, as Solana gradually regains bullish momentum, the altcoin reflects resilience amidst market volatility. As SOL price holds key support levels, the record-breaking network growth targets bullish targets for the coming year.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
