Solana price faces volatility after fluctuating within the range of $143 and $153 in the last 24 hours. The volatility comes as some traders book profits after the recent rally, while others are accumulating as the soaring blockchain activity fuels confidence. With DEX volumes surging to a two-month high of $3.7 billion, how will SOL price react? Let’s explore.
Solana Price Targets Gains as DEX Volumes Explode to 2-Month High
Solana price eyes a major bullish breakout due to surging blockchain activity. Data from DeFiLlama shows that decentralized exchange (DEX) volumes on the SOL blockchain have surged by more than 35% in the last two days to a two-month high of $3.699 billion. At press time, Solana’s DEX volumes were also notably higher than Ethereum’s $2.41 billion.
This increase is adding weight to the bullish thesis around SOL value today, as a sustained increase could bolster demand for the Solana token. This is because traders using DEXs created on Solana have to buy SOL to pay gas fees to complete their transactions, which is a positive thing for the price.
Most of these DEX volumes are coming from SOL-based meme coins, which have seen a rapid increase in value. In the last 24 hours, TRUMP meme coin surged with its market cap jumping from $1.8 billion to $2.4 billion at press time.
SOL Price Analysis as Mixed Signals Emerge
Despite the surging blockchain activity that hints towards a bullish outlook for Solana price, technical indicators on the four-hour chart suggest that SOL might retreat to test support before resuming its uptrend.
The MACD line has converged with the signal line from above, forming a sell signal, which could cause a spike in selling pressure. The RSI line that is currently tipping south also shows that buying activity is fading, despite the momentum still being bullish.
However, the ascending parallel channel shows that a bullish Solana price prediction is still in play. As long as SOL continues to trade within this channel, forming a series of higher lows and higher highs, the upward momentum will continue.
Solana price also needs to defend the support level of $147 for a bullish continuation, and if it is successful, it might break out past the key resistance at $180 and set eyes on fresh all-time highs. However, losing support at the lower trendline of the ascending channel will stir a resumption of bearish trends.
Considering the surge in DEX volumes and the hype around SOL-based meme coins, it is likely that Solana price sustains its uptrend and possibly breaks past the critical psychological hurdle at $200. However, traders need to remain cautious and monitor the RSI and MACD indicators to detect a possible trend reversal.
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