Solana is testing a crucial supply level around $160 after a sharp 15% rise since last Friday. The crypto market is facing increased volatility as optimism grows, driving up token prices.
Over the past few weeks, Solana and other major cryptocurrencies have been on a rollercoaster ride, and the coming weeks promise continued uncertainty as volatility shows no signs of slowing down.
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DefiLlama’s key metrics reveal that Solana’s total value locked (TVL) has reached a new annual high, now at around $6 billion, its highest level since September 2022. This TVL increases confidence in the Solana ecosystem and in decentralized finance (DeFi) offerings.
Investors and traders are closely watching the market, with Solana’s performance likely to serve as a key indicator for broader market sentiment. As Solana tests this crucial resistance level, the next few days will determine whether the token continues its upward momentum or faces another round of volatility.
Solana Testing Crucial Resistance
Solana is flirting with a 5% rise, poised to challenge local highs and potentially confirm a long-term uptrend. As the broader crypto market undergoes a shift, investors and traders are eagerly looking for signs that Solana is ready to reach new highs.
DefiLlama main data shows that Solana’s total value locked (TVL) has reached a new annual high of $6 billion. TVL measures the total value of assets deposited in a blockchain project and is a key indicator of user trust and engagement.
A rising TVL suggests that more users are locking their funds in Solana’s decentralized applications, a sign of growing trust in its ecosystem.
This increase in TVL further supports the optimistic outlook that many investors have for Solana. The platform’s growing DeFi offerings and solid infrastructure make it a strong contender in the altcoin space. As Solana continues to move towards new highs, this fundamental data reinforces optimism about its future price action.
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A confirmed rise above key resistance levels could start a sustained upward trend for Solana, positioning it as one of the market’s best performers. Investors are watching closely to see if the current price movement can translate into a long-term recovery.
Main Levels to Watch
Solana is currently trading at $155 following a volatile session yesterday. The price was successfully retested and now holds above the 200-day moving average (MA) at $151, signaling strong support for the asset. This level has been a key indicator for traders and maintaining it is crucial to sustaining the current bullish momentum.
For bulls to maintain momentum, SOL must remain above this 200-day MA and break the $160 level. Such a move would likely confirm an uptrend and push Solana to test its yearly highs around $210. This would mark a significant upward movement, reflecting optimism in the market and increasing confidence among traders and investors.
However, the bullish momentum could weaken if the price fails to close above $160 and maintains above the 200-day moving average. In this case, a pullback is likely, with the price potentially dropping to lower demand levels around $140.
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This correction would serve as a consolidation phase before any further upward moves. Traders are closely watching these key levels as they will dictate Solana’s next big move in the market.
Featured image of Dall-E, TradingView chart