February 29, 2024

Solana (SOL) experienced a surge to a 30-day peak of $107 on Jan. 30, driven by increasing defi volumes and airdrop enthusiasm. Despite a recent 8% pullback to $98 on Feb. 5, key indicators suggest a resilient outlook.

During the market’s negative response to U.S. Federal Reserve Chief Jerome Powell’s statements, Solana defied trends, reaching a 30-day high. Increased demand in the defi ecosystem and positive speculation about the Jupiter airdrop fueled the rally.

Solana’s trading volume peaked at $3.8 billion during the rally, but holders have since abstained from trading, reducing volume by $2.4 billion. This 56% decline in trading activity signals strong positive conviction among holders, contributing to SOL’s price resilience.

Fundamentally, rising defi activity and positive speculation around the Jupiter project have bolstered SOL’s support. Solana recorded over 875,000 active users on Jan. 31, showcasing organic growth and increased adoption.

With curtailed selling pressure and strong network growth, Solana is positioned for another potential leg-up towards the $120 range. The Parabolic SAR indicator supports this bullish outlook, with current trends suggesting a possible bullish reversal, though a correction below $85 could challenge this scenario.

In conclusion, Solana’s current positive indicators, including reduced selling pressure, strong network usage, and technical analysis, suggest a favorable environment for a potential retest of the $120 territory.

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