Solana price analysis shows a three-day rally from $127 to $147, registering a 16.6% growth. This bullish turnaround coincides with the broader market uptick following the 0.5% rate cut decision by the US Fed. Will the general sentiment be enough to push SOL above $200, or will sellers counterattack for another dump?
Solana Price Analysis: Why SOL Remains Trapped Below $200
The Solana price analysis shows a sideways trend below the $200 psychological level for over six months now. This consolidation displayed three failures by SOL buyers to surpass the overhead barrier, indicating an intense supply zone. Here are four reasons why this altcoin struggles to build sufficient momentum for a $200 breakout.
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- Low Probability of Solana ETF Approval Dampens Market Hopes
- Solana Meme Coin Boom Boosts Network Activity
- Development Activity Decline Threatens Bullish Prospects
- Solana Price Analysis: Key Support Levels Under Pressure
Low Probability of Solana ETF Approval Dampens Market Hopes
According to data from Polymarket, the odds of a Solana ETF being approved in 2024 have plummeted to just 3%. Following the success of Bitcoin and Ethereum spot ETFs, Solana was considered the next-best candidate for a U.S.-based crypto ETF. The potential approval would give institutions’ investment better access to this asset and drive higher demand for SOL coins. However, as the SEC continues to resist greenlighting new ETFs, the Solana price analysis could struggle to rally above $200.
Solana Meme Coin Boom Boosts Network Activity
The SOL blockchain witnessed a notable surge in network activity and revenue during the past meme cycle. According to Dune Analytics data, the Solana Meme coin generator Pump Fun has accumulated $107,354,482 in total revenue by the press time. The declining interest in the meme cryptocurrency sector has significantly impacted network progress, and therefore, the revival is crucial to triggering a bull run.
Development Activity Decline Threatens Bullish Prospects
Since August 2024, Solana’s development activity has recorded a notable decline to reach a current sitting of 159. Development activity is a key metric that reflects the level of innovation and improvements on the network. The chart below from Santiment may reflect stalled developer activity and reduced blockchain engagement, negatively impacting the SOL price prediction.
Solana Price Analysis: Key Support Levels Under Pressure
The Solana price analysis from veteran trader Peter Brandt highlights the $129 as a crucial support zone amid the current consolidation pattern. If the support breaks, the selling pressure could accelerate and plunge the SOL price to $80 support.
Observation about $SOL
In an area of support. If support gives way, then large rectangle will complete and point toward $80 and change pic.twitter.com/66L6We7ewZ— Peter Brandt (@PeterLBrandt) September 18, 2024
Thus, the potential out of a rectangle pattern could significantly impact the Solana price prediction for a $200 breakout.
Frequently Asked Questions (FAQs)
The current market environment and the presence of a supply zone above $200 make it difficult for buyers to generate sufficient momentum for a breakout.
The probability of a Solana ETF approval has dropped to just 3%, which has dampened investor hopes for a near-term rally.
According to trader Peter Brandt, the $129 level is a crucial support zone for Solana
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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