Solana Has Managed To Regain The $20 Mark, Will The Bullish Momentum Sustain?

Key Points:

• Solana experiences positive momentum and gains traction with high transaction volumes despite a market decline.
• SOL’s 24-hour trading volume increases significantly by over 165% to $940 million, signaling strong investor interest.
• On-chain measures like development activity and societal dominance have not negatively affected SOL’s price recovery, with the asset maintaining its upward trend.

Solana (SOL) is gaining traction as a result of its high transaction volumes and excellent improvements in the NFT sales industry. After the intraday market decline, it is presently the lone bright spot token.

SOL’s 24-hour trading volume increased by more than 165% to $940 million, indicating a significant effort to send a positive signal.

Solana has also maintained the network’s remarkable performance, with total value locked (TVL) on DeFi platforms remaining stable at $1.033 billion. Nevertheless, Solana’s TVL performance has been disappointing, with numbers dropping in November 2022 and since then.

Moreover, Solana’s price recovery is unaffected by on-chain measures such as development activity and societal dominance. Notwithstanding the SEC’s designation of “security,” the asset price has constantly risen. This step is designed to improve Solana’s image and recognition as a blockchain platform.

Surprisingly, Santiment researchers observed that on-chain measures such as social dominance and development activity had no detrimental influence on SOL price. The SOL network’s development activity is comparable to that of 2021, when the asset rose to the $250 level, as seen in the chart below.

SOL reached an intra-day high of $20.95 and is presently trading around the $19.8 mark, indicating good upward momentum.

Note that SOL is currently trading below the Fib 61.8% level and the bearish trendline. This shows that the bears are still holding the $20 mark as a boundary to push the price down.

In addition, the fact that Bitcoin is trading near $30,000 and the market shows a gloomy background after the Fed minutes on Wednesday has caused the coins to drop in price. Currently, the signal to buy is relatively risky compared to short and medium-term investors.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.