Solana is attracting more traders with increased activity and on-chain transactions, indicating growing interest. The price of SOL is aiming for a breakout above $140 as a result.
After a slight dip, the Solana (SOL) price is gaining momentum again, aiming to surpass its important resistance level of $140. Currently, SOL is up by 7%, trading at $138, with a market cap of $61.4 billion. This is happening despite congestion issues on the Solana network due to increased trading activity.
Surge in Solana DEX Trading Volume
Recent data from DeFiLlama reveals a remarkable surge in Decentralized Exchange (DEX) trading volume on the Solana network from March 3 to March 6. For four consecutive days, trading volume exceeded $2 billion, reaching a record-breaking $2.85 billion on March 5 alone, marking a new single-day high.
This surge in trading activity coincides with increased on-chain transactions, potentially contributing to the current congestion experienced on the Solana network. The heightened activity also underscores growing interest and engagement within the Solana ecosystem.
Due to the network congestion, crypto exchange Binance announced its decision to temporarily suspend Solana withdrawals on Wednesday, March 6.
Analyzing Solana’s Price Trends
Examining SOL’s price chart reveals a compelling narrative of a strong uptrend, characterized by consistent higher lows and higher highs—a bullish signal in market technical analysis. Additionally, the alignment of moving averages indicates sustained buying interest, with shorter-term averages surpassing longer-term ones, typically associated with ongoing bullish sentiment.
Currently trading around the $135 level, SOL faces immediate resistance. However, breaching this resistance could trigger a new rally. Conversely, support levels are identified near $115 and $104, historically acting as springboards for price rebounds. Recent upward price movements have been accompanied by significant trading volume, indicating active market participation and reinforcing a positive outlook.
As the broader market undergoes a shift, Solana’s upward momentum becomes increasingly promising. Investors are seeking alternatives to Ethereum’s high gas fees and network congestion, and Solana’s scalability and cost-effectiveness make it an attractive option for developers and investors alike. This favorable positioning could lead to further price increases for Solana in the near future.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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