The Solana Network has recorded an extraordinary level of DEX transactions with the introduction of the OFFICIAL TRUMP (TRUMP) memecoin. This achievement marked a historic peak, surpassing $200 billion in monthly volume—an accomplishment unmatched by any other network thus far. Consequently, this led to an increase in the SOL price, which moved beyond the range it maintained over the last few days. Nevertheless, the bears curtailed the surge, indicating a possibility of persisting in the current sluggish trend.
The SOL price once more approached the crucial resistance at $270 for the fifth instance in the last few days, suggesting that bulls are concentrating on pushing the levels beyond the established range. In the meantime, the inefficiency is remaining above the boundaries, signifying a deficit of strength, primarily due to a significant decline in volume. Regrettably, the technical indicators have also shifted bearish, indicating the advent of a downward trend.
Is a substantial decline in the SOL price imminent? Will the support at $240 provide the necessary foundation for a rebound?
Following the latest ascent from a low near $175 to a new all-time high above $295, market participants have grown exceedingly optimistic regarding the subsequent price movements. Meanwhile, the rejection from the same resistance reinforces the formidable presence of bears that may have rendered it quite inflexible. The STOCHRSI has reached its lower limit, indicating that a rebound might be imminent. However, the price is currently testing the vital 50-day moving average, and a breach below this could potentially pull the levels down to under $240.
The Solana Network has emerged as the most preferred platform for memecoins, attracting enormous liquidity. Yet, taking into account the present price dynamics, the excitement seems to sustain only for a brief duration, adversely affecting the SOL price in the future. Simultaneously, significant institutions advocating for Solana ETFs have created considerable buzz, enhancing the likelihood of a bullish continuation.
Thus, while the Solana (SOL) price may experience a downturn now, the support levels at $240 or $237 might provide a robust foundation to avert a prolonged pullback.
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