Will Solana (SOL) price cross the $200 barrier as it dominates the crypto market DEX volumes amid a recovering market?
As the developing ground of new AI agents in the crypto market, Solana SOL $194.4 24h volatility: 2.7% Market cap: $94.29 B Vol. 24h: $3.47 B is positioning itself for a parabolic rise in the crypto race. Over the past 7 days, the 6th biggest cryptocurrency has witnessed a pullback of 4.49%, currently holding a market cap of $90.4 billion.
Amid the recovering market, SOL price is struggling to reach the $200 milestone. In the daily chart, the Solana price trend reveals a pullback to its local support trendline, with an intense lower price rejection from $169.22 on January 13.
Solana sustained dominance above the 200 EMA line, with a closing price of $182. Currently, the SOL token is trading slightly above the local support trendline at a market price of $186.42.
As Solana retests the 200 EMA line, the daily RSI line reflects a bullish divergence. This increases the possibility of SOL price bouncing off to the resistance trend line overhead.
The two converging trend lines are forming a rising wedge pattern, provided the price action respects the boundary lines. The immediate support for SOL stands at the merger of the 20 and 100 EMA lines at $195.
Beyond this, the $200 psychological milestone and the $215 swing high are critical resistances. After breaking these resistances, Solana is likely to sail smoothly to the overhead trendline near $270.
On the flip side, the breakdown of the local support trendline will likely retest the $157 mark.
As Solana continues to trade near the support trend line, the downside risk remains significant. In a recent X-post by Ali Martinez, a crypto analyst, a technical indicator is giving a sell signal.
The TD Sequential indicator has flashed sell signals on the 4-hour charts for #Bitcoin, #Ethereum, $XRP, and #Solana, suggesting a potential price correction across the crypto market ahead of the CPI report. pic.twitter.com/za9PsZNdOk
— Ali (@ali_charts) January 15, 2025
The TD Sequential indicator has predicted a potential correction in Solana as per the 4-hour charts. This sell signal ahead of the release of the CPI data warns of an increase in volatility.
Despite the fluctuations in SOL token prices and broader market volatility, the Solana network is witnessing new developments in DEX volume. The Decentralized Exchange trading volume on Solana has done more in the last two and a half months than it did in the previous eight months of 2024.
⚡️ #DEX volume on #Solana has done more in the last 2,5 months than it did in the previous 8 months in 2024.👀
Don't fade $SOL ✌️ pic.twitter.com/9rD5wQKuCu
— Crypto Rand (@crypto_rand) January 15, 2025
The total volume stands at $3.542 billion over the past 24 hours, despite a weekly change of negative 9.97%.
In the first half of January 2025, Solana’s DEX volume outpaced Ethereum and the Base ecosystem combined. The Solana DEX volume in 15 days rose to $60.633 billion, while Ethereum recorded $32.913 billion and Base ecosystem at $24.848 billion.
🚨JUST IN: Solana dominates DEX trading volume in the first half of January 2025, outpacing Ethereum and Base combined in volume. pic.twitter.com/FnFPCaN5Uf
— SolanaFloor (@SolanaFloor) January 15, 2025
As DEX volume over the Solana network continues to grow, the demand for SOL is likely to follow. The rising demand for Solana could push the market price higher, creating a potential new swing high.
As Solana’s DEX volume outpaces competitors and its network activity grows, the bullish momentum could lead to new price highs. However, traders should monitor key support levels and the sell signal from technical indicators to manage potential downside risks.
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.
Solana (SOL) News, Altcoin News, Cryptocurrency News, News
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.
