As Solana network dominates Ethereum and others in DEX volume, the SOL price trend hints at a new all-time high.
Despite the short-term surge in selling pressure in the crypto market, Solana SOL $145.4 24h volatility: 1.9% Market cap: $75.43 B Vol. 24h: $2.89 B is maintaining a positive strand. With multiple fundamental and network growth record growth, Solana (SOL) price trend hints at a bounce-back rally. With a bullish reversal, the price action analysis also hints at a breakout rally as the price fluctuates near the $250 psychological mark. Will this breakout rally result in a new all-time high? Let’s find out.
Technical Analysis: Solana (SOL) Price Trend Hints at Breakout Rally
In the 4-hour chart, the Solana price trend reveals a triangle pattern formation. The consolidation within the pattern is supported by a long-coming support trend line. Currently, the Solana price trend reveals a low price rejection from the 61.80% Fibonacci level at $243. However, the 20 EMA line at the $250 psychological mark works as a short-term ceiling.
Photo: TradingView
With the lower price rejection, the Solana price trend hints at a potential Morningstar pattern to challenge the overhead resistance trend line. Along with the resistance trend line, the 78.60% Fibonacci level at $262.12 will influence the supply zone. Amid the short-term reversal within the triangle pattern, the 4-hour RSI line has dropped to halfway levels. This reflects a shift to neutrality after a short-term bullish phase. However, a positive reversal within the pattern will likely resurge the RSI values. Hence, the technical indicators remain mildly bullish.
Based on the Fibonacci levels, the bullish reversal within the triangle pattern will likely surpass the $250 mark to challenge the immediate resistance at $262. In case of a bullish breakout, the upside chances extend from $285 to $315. The price targets are derived from the 100% and 1.272 Fibonacci levels. On the flip side, closing under the 67.80% Fibonacci level at $243 will likely test the $230 demand zone.
Fundamental Growth: Stablecoin Activity Boosts Solana’s Liquidity
Amid the promising price action, the Solana stablecoin supply has recently reached an all-time high value. The stablecoin active address count has increased nearly 100% to hit 3.8 million addresses. Furthermore, the stablecoin supply has reached $10.2 billion, recording a new all-time high.
In recent news, Circle has increased the USDC supply over Solana by $250 million. So far, $8.22 billion of USDC has been minted on Solana, with 3.73 billion USDC minted in the past week. This reflects the growing liquidity over the Solana network, boosting network activity.
Solana’s positive price action, supported by strong fundamentals and growing stablecoin liquidity, hints at a bullish breakout rally. A move above $250 could pave the way for a retest of $285 to $315. However, a break below $243 would shift the focus to the $230 demand zone.
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