Key Insights:
- Solana struggles near $135 support, risking a drop to $124 and $115 if breached.
- DApps on Solana generated over $17M in revenue, showcasing blockchain activity amid volatility.
- Bollinger Bands indicate high volatility, with traders focused on Solana’s ability to hold critical support.
As of the time of writing, Solana is testing the $135 support zone, with a 24-hour trading volume of over $5.17 billion. The cryptocurrency is up 6.21% in the last 24 hours, but market watchers remain cautious. As $SOL hovers near the lower band of the Bollinger Bands (BB) indicator, the market appears to be in a phase of heightened volatility.
Technical Indicators Show Increased Market Volatility
Solana has seen a notable decline from its peak of $245 in recent months. The price is now approaching the critical support zone of $135, which traders are watching closely. The Bollinger Bands have been widening, signaling increased volatility and uncertainty.
Analysts are particularly focused on whether Token can maintain support around $135. The 20-day simple moving average (SMA) currently sits below the price, which suggests that the overall market sentiment is cautious.
Source: TradingViewDespite this, the price’s resilience in staying above the lower band has kept traders hopeful for a potential rebound. Analyst Ali pointed out that if SOL can hold the $135 support zone, it could avoid a steeper decline. If it fails, the price could face further downward pressure toward key support levels, including the $124 and $115 areas.
Solana DApp Performance and Volatility
Meanwhile, the ecosystem shows strong activity in its decentralized applications (DApps). Over the past week, DApps have generated over $17 million in revenue. Among the top performers, Pumpfun has led with over $9.80 million in earnings, while Axiom generated $3.23 million.
These figures demonstrate the continued usage and potential of the Solana blockchain, despite the market fluctuations. This development highlights that while the price of Solana faces pressure, its ecosystem remains active and productive.
The significant revenue generated by DApps may serve as a potential indicator of future growth, assuming market conditions stabilize. With the market experiencing a period of increased volatility, traders are cautious of further downward movement. On the other hand, a potential rebound could bring the price back to more stable levels.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/solana-potential-drop-price-hold-124/
