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The Solana price has plunged 5.6% in the last 24 hours to trade at $232.61 as of 4:05 a.m. EST on a 15.5% increase in daily trading volume to $9.62 billion.
This jump in the SOL price comes after Galaxy Digital scooped up another $306 million on Coinbase and Binance, taking its buying past $1.55 billion in the past five days.
The purchases coincide with a period of steady growth for the network. Solana is known for its ability to process high transaction volumes quickly at very low fees, making it a preferred choice for decentralized finance applications, non-fungible tokens (NFTs), and other blockchain projects.
Galaxy Digital’s investment reinforces the view held by some large investors that Solana has strong potential for growth as blockchain adoption continues to expand. Growing demand for SOL reduces selling pressure, helping to sustain the price increase.
In addition to institutional buying, Solana’s on-chain data shows a healthy and growing network. The platform’s total value locked in DeFi has hit an all-time high of $13 billion, highlighting the steady increase in activity and in the amount of capital secured in smart contracts on the Solana blockchain.
This shows that more users and developers are choosing Solana for their decentralized finance projects, contributing to its expanding ecosystem.
Solana’s network also recorded consistent growth in transactions and the number of wallet addresses interacting with the blockchain. This growing user base shows that more people are actively engaging with the network, providing further support for Solana’s price appreciation.
This combination of increased TVL and more active users gives the price rally a strong fundamental foundation and reduces the possibility that the price increase is simply due to speculation.
Technically, Solana remains in a bullish position. A golden cross recently took place. This technical pattern is often seen as a strong sign of a bullish trend and could indicate further upward momentum for SOL price in the coming weeks.
The Solana price is trading at close to a technical resistance level just below $250. This $250 price point acted as a ceiling for previous price pushes, so buyers will be watching this level closely.
Additional technical indicators support a positive view for Solana. The Relative Strength Index (RSI) stands near 64, which indicates buying strength but still leaves room for additional gains since it has not yet reached overbought territory.
The Moving Average Convergence Divergence (MACD) chart shows a broadening bullish crossover, suggesting that buying pressure across intermediate trading sessions is increasing. Meanwhile, the Average Directional Index (ADX) remains low at about 18, signaling that the current uptrend may be in its early phase with potential to build into a stronger trend.
If Solana can break through the $250 resistance level, the next price target might be the previous high near $295. In case the price encounters strong resistance and fails to rise beyond $250, a pullback to the 50-week moving average, around $180, is possible.
Overall, these technical signs suggest a cautiously optimistic scenario for the SOL price with room to rally higher.
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