Solana Price Resilient Above $165 Despite Market Correction
The native token of the Solana ecosystem, SOL, is defying the current market correction and maintaining its price above $165. While Bitcoin has seen a significant sell-off and dropped below $70K, Solana’s strong resilience suggests it may experience intense buying momentum if the broader market returns to a recovery trend.
Can Solana Price Sustain Above $150?
In late February, Solana began a bullish rally after rebounding from the $95.5 support level. This upward trend has propelled the coin’s value by 86% within three weeks, with the current price sitting at $183.
Alongside its price rally, the Solana network has witnessed significant growth in user activity. The number of active addresses has surged from a low of 660,000 on February 26th to a record high of 1.04 million. This increase indicates greater user involvement and attraction to Solana.
Furthermore, the rising price has broken through the neckline resistance of the cup and handle pattern, a well-known reversal pattern that signals a positive shift in market trend and sets the stage for steady growth.
With a daily growth rate of 2.32%, SOL is steadily heading north following the path outlined by the cup and handle pattern. If this pattern holds true, the SOL price could surge another 38% and reach a potential target of $250.
$20 Million Worth of SOL Transferred to Binance, Indicating a Potential Correction Phase
A recent transaction spotted by Lookonchain revealed that 120,905 Solana (SOL) tokens, worth approximately $20,399,501, were moved from an unknown wallet to Binance. Large transfers to exchanges often precede increased sell-offs, which can impact the asset’s price.
Considering the broader market correction and the whale exit indicated by this transfer, a new correction phase in the SOL price may be triggered. In such a scenario, buyers can expect support levels at $162 and $146, which align with the 23.6% and 38.2% Fibonacci retracement levels.
Technical Indicator
- BB Indicator: An upswing in the Bollinger Band indicator suggests strength in buying momentum.
- Average Directional Index (ADX): The ADX slope is showing an uptick of 23%, indicating that buyers have sufficient momentum to sustain this rally.
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