- Solana traded within a certain consolidation range, indicating impending growth.
- The 200-day EMA and Fibonacci levels suggested key support and resistance points.
During recent trading sessions, Solana said [SOL] has experienced significant fluctuations in market value. From a high of $172 last week, the digital asset has corrected and stabilized around $151 at the time of writing.
This move represented a modest 0.1% increase over the past 24 hours. Such market behavior underlined a crucial phase of price consolidation that could set the stage for future price dynamics.
Solana: Market forecasts
Crypto analyst Altcoin Sherpa has done just that as long as a perspective on Solana’s current market performance, pointing to a consolidation range between $185 and $120.
According to Sherpa, this range indicated a period of market equilibrium following a rapid price increase. Such phases are not uncommon and often indicate that a market is preparing for the next important step.
The 200-day exponential moving average (EMA) is a technical analysis tool used to smooth out price data by creating a continuously updated 200-day average price.
The EMA is critical for identifying the overall market trend and potential support levels. Approaching this average indicates a near-term support level that could encourage buying activity among traders.
Source: Altcoin Sherpa/X
Further technical analysis of Sherpa using Fibonacci retracement revealed critical support and resistance levels.
At the time of writing, the 0.382 retracement level was around $138.37, which could potentially be a pivotal point for Solana’s price.
If the price falls below this level, the subsequent levels – 0.5 and 0.618 – will likely act as further thresholds where price stabilization or a reversal could occur.
Fundamental analysis
Despite ongoing consolidation, recent activity in Solana’s network may point to underlying strengths.
For example, the number of active addresses on the Solana network has increased roseincreased from less than a million to over 1.1 million in just a week.
Source: Solscan
This increase in active addresses typically indicates growing user engagement or preparatory activities for upcoming transactions, which could lead to increased demand for SOL.
As for market derivatives, Solana’s Open interest– which represents the total number of outstanding derivative contracts, such as options or futures that have not yet been settled – showed an intriguing pattern.
Although there is a slight decrease in Open Interest of approximately 3%, Open Interest volume has increased by 19.54%.
Source: Coinglass
This suggested that while there were fewer contracts open, the remaining contracts were for larger volumes, indicating increased market activity and possible anticipation of significant price movements.
There has also been a recent spike in Solana’s price volatility, he said Santiment.
Volatility indicates the degree of variation in trading prices, with higher volatility often leading to wider price swings, which can create opportunities for traders.
Source: Santiment
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Meanwhile, AMBCrypto recently reported that the Money Flow Index (MFI) and the Relative Strength Index (RSI) showed recent gains for Solanaindicating increased buying pressure and potential for price increases.
Conversely, Chaikin Money Flow (CMF) remained in a bearish zone, indicating that while buying pressure is increasing, overall money flow into Solana could be better, generating mixed sentiment among investors.