Solana Price Nears Key Pivot as Bulls Eye Breakout Toward $147

Source: CryptoNewsNet Original Title: Solana Price Nears Key Pivot as Bulls Eye Breakout Toward $147 Original Link: SOL, the native cryptocurrency of Solana ecosystem, is up 1.72% during Thursday’s U.S. market hours to trade at $138.6. The uptick aligned Solana’s resilience to broader market selling pressure as Bitcoin teased another breakdown below the $90,000 mark. The current strength in Solana price can be linked to key technical support and several on-chain metrics that accentuate steady growth in its network.

Solana Dominates DEX Volumes and Stablecoin Growth, Data Shows

In the last two weeks, the Solana price witnessed a notable recovery from $119.25 to $138.7, registering a gain of 16.38%. Consequently, the asset’s market capitalization jumped to $78.17 billion.

On-chain data shows this recovery is not just mimicking the new year rally of broader market trend, but also represents natural uplifting of asset value with growing fundamentals.

Recent figures reveal changes in the performance of blockchain, especially Solana. Over the last year, applications on this network earned $2.39 billion in revenue, with a 46% growth from previous levels and reaching new highs. Its total income for the platform jumped to $1.48 billion, or a 48-fold increase from numbers two years ago. User engagement also increased with an average of 3.2 million wallets being active each day.

On January 6th, Solana had a surge in stablecoin reserves, growing by around $900 million in one day. This placed it ahead of other networks such as Arbitrum, Polygon PoS, and Plasma when it comes to adjusting its supply in the short term.

In addition, trading activity on decentralized exchanges revealed Solana leading in both daily and monthly volumes. It has further cemented its dominance in placing value on digitized equities, with the total market value of these assets falling under its grasp.

These metrics indicate the continued developments in the cryptocurrency space, where Solana is continuing to outpace its rivals in terms of growth and adoption.

Solana Price Inches Away From Crucial Pivot Level

After months of downtrend, the Solana price trajectory has recently shifted sideways above the $118 support. The consolidation trend showed notable price swing on either side with no sustainability, indicating lack of initiation from buyers or sellers.

However, a deeper look into SOL’s daily chart shows resemblance of a double bottom reversal pattern at the aforementioned support. The chart setup is typically characterized by two bullish swings creating a ‘W’ shape, awaiting major neckline breakout.

With sustained buying, the Solana price is just 6.4% short from challenging the key resistance at $146. The momentum indicator RSI at 61% reinforces the bullish sentiment and strength in price to drive higher recovery.

The potential breakout from $147 will intensify buying pressure and push the Solana price 18% to hit $172.

On the contrary note, the overhead resistance is also backed by a declining trend as shown in the chart below. Since mid-September, this descending trendline has acted as the dynamic resistance to carry a correction trend in Solana price.

Holding this line would indicate that a sell-the-bounce sentiment is intact among market participants, signaling a prolonged downtrend ahead.