u.today
Solana (SOL), also dubbed the "Ethereum killer," appears to be nearing its limit in the ongoing bullish cycle. Within the past seven days, the sixth asset by market capitalization, worth about $95.25 billion, has struggled to stay above the $200 support level.
Solana’s struggle at price stability
Analysts suggest the coin might have run its course in the ongoing bull market cycle. Data from CoinMarketCap signals a huge decline in market volume by 18.96% to $3.32 billion. This low volume may signal the loss of investors’ confidence and could ultimately impact SOL’s quest to retest new price levels.
Solana appears trapped in a downward spiral as bearish forces seek to keep it from soaring. Every price drop within the last 30 days has fueled its instability and the chances of rebounding to previous levels. Rather, SOL has found a place at a support level lower than the previous heights.
Market observers maintain that with low trading volume, the possibility of Solana posting a retracement might prove difficult. Alternatively, a shift in trading volume is crucial for the price to breach the $200 resistance level.
Despite attaining a new all-time high (ATH) in daily transactions with 72.8 million, this has not helped boost the price metric. Although daily transactions soared by 97.8%, it was not accompanied by a corresponding uptick in active addresses. This limited SOL's price growth.
Any optimism?
Some market analysts have attributed the inability of Solana to rediscover new price heights to a shift in the interest of investors. Market dynamics suggest traders seek the next profit-taking opportunity to invest in and rake in gains while the bullish cycle lasts.
This development has increased SOL's selling pressure. Although Henrik Zeberg, a crypto analyst, remains confident in SOL, the indices have not switched to favor his optimism. Zeberg believes Solana is still in consolidation and could register a breakout soon.
The last few trading days will determine if Solana still has the momentum to post a rebound.