Solana faced heightened volatility yesterday, dropping 7% following the Federal Reserve’s announcement of a 25 basis point rate cut and fewer projected cuts for 2024. Despite the sell-off, Solana’s price action remains resilient as it managed to hold above a critical support level, reinforcing confidence in its ability to weather macroeconomic shifts.
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While the market reacted to the Fed’s cautious tone, Solana’s on-chain metrics tell a more optimistic story. The number of daily transactions on the Solana network has surged, nearing 67 million, reflecting growing adoption and sustained network activity. This robust transaction volume highlights Solana’s position as a leading blockchain platform, with developers and users continuing to rely on its scalability and efficiency.
Analysts suggest that holding above its key support level could position SOL for a strong rebound, particularly if broader market conditions stabilize. The increased on-chain activity adds to this bullish outlook, signaling that long-term fundamentals remain intact.
Solana Holding Key Demand
Solana demonstrates resilience in the face of market turbulence, holding above key demand levels around $210 following yesterday’s sell-off triggered by the Federal Reserve’s policy announcements. This critical support level reinforces bullish sentiment for the asset, with many analysts eyeing a breakout on the horizon.
Top analyst Jelle recently provided a compelling technical analysis on X, noting that Solana successfully took out the lows, maintained its position above monthly and weekly support levels, and continued to trade within its falling wedge pattern. According to Jelle, this setup suggests a breakout is imminent, with Solana targeting new all-time highs soon.
Supporting this optimistic outlook, on-chain metrics paint a promising picture for Solana’s network activity. Ali Martinez shared data showing the Solana network nearing 67 million daily transactions, underscoring strong adoption and user engagement. This heightened network activity highlights Solana’s utility and strengthens the foundation for sustained price growth.
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If Solana holds above the $210 level in the coming days, it could trigger a significant rally as bullish momentum builds. Traders and investors…
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