Solana (SOL) is experiencing notable fluctuations in its price, driven by a mix of increased network activity and broader market downturns. This article will shed light on the factors influencing SOL price and its potential trajectory in the coming months.

Solana Price Analysis: Network Activity Boosts Optimism

Solana price is currently trading around $170, showing a decline of 5,5% in the past 24 hours. Despite this correction, SOL price has witnessed a remarkable rally, soaring over 1,634% since January 2023. This surge has been largely attributed to airdrops, particularly of meme coins, which have significantly boosted network activity and investor confidence in SOL.

The increased network activity, reflected in high transaction volumes and total value locked (TVL), underscores the growing relevance of Solana’s smart contracts network. According to collected data, Solana’s transaction volume reached $3.68 billion on March 15, up from $15.22 million on January 1, 2023. Similarly, TVL has surged over 2344%, from $210.47 million to $5.145 billion.

Solana Price Prediction: Technical Indicators Point to Potential Gains

Solana price action forms a rounded bottom pattern, indicating potential for a 47% gain. The price has breached the $148 to $155 zone, supported by major exponential moving averages (EMAs). The Relative Strength Index (RSI) is in positive territory at 58, suggesting that bullish momentum could push SOL’s price above the neckline at $186, potentially reaching $252.

However, profit-taking could trigger a pullback, causing SOL to drop below the $150 psychological level. A breach of this support could see the price fall to $135 or even flip the $121 support into resistance, invalidating the bullish outlook.

Technical indicators present a mixed picture. The RSI at 55.40 indicates a move towards neutral territory, while the MACD shows a bullish crossover. Despite the negative market mood, these signals suggest potential market shifts. Solana’s trading volume has also seen an uptick, reaching $4.13 billion in 24 hours, indicating increased activity despite less demand.

If Solana price fails to hold the $155 support, it could slide towards $130. However, if it finds support and rebounds, immediate resistance is at $180. A break above this level could signal a trend reversal, though the current market conditions make this less likely.

Solana price is influenced by a combination of increasing network activity and broader market downturns. While technical indicators point to potential gains, market volatility poses significant challenges. Investors should closely monitor support and resistance levels to navigate Solana price movements.