Current trend

Last week, the SOL/USD pair moved to a downward correction: the price fell to the level of 162.50 (Murrey level [5/8]), but has now resumed growth, regaining some of the lost positions, and is held in the area of 187.50 (Murrey level [7/8]).

It should be noted that the decline in quotes occurred against the background of a reduction in institutional investments in bitcoin ETFs and uncertainty about the further actions of the US Federal Reserve. However, unlike most major digital assets, the correction of the instrument turned out to be less prolonged and not as deep. This situation is associated with a serious improvement in the performance of the Solana blockchain, which, with its working conditions and distribution of meme coins (primarily BOME, WIF, BONK), attracts an increasing number of developers and users, which also supports the growth of the SOL/USD pair. So, over the past 30 days, the volume of decentralized applications on the Solana network (DApp) has increased by 334.0%, and the number of active users over the same period increased by 43.0% to 2.66 million, which significantly exceeds the performance of its closest competitors (the growth in the number of users on the BNB Chain network was 15.0%). In addition, last week, the Solana blockchain became the leader in the volume of stablecoin transfers, which amounted to 364.7 billion dollars, exceeding the same indicator of the Ethereum network at 153.0 billion dollars. Currently, Solana accounts for more than 42.0% of the stablecoin market, whereas a year ago it did not exceed 2.0%. All these indicators indicate an increase in the popularity of the Solana blockchain among users, which in the near future may ensure the continuation of a significant strengthening of the positions of the SOL token.

Support and resistance

The asset is trying to consolidate above the 187.50 mark (Murrey level [7/8]), however, in order to resume growth, it needs to break above the level of 200.00 (Murrey level [8/8]), which was already unsuccessfully tested a week ago. If successful, the quotes will be able to continue their upward movement towards the targets of 225.00 (Murrey level [ 2/8]) and 250.00 (Murrey level [ 2/8], W1). The key for the "bears" is the 175.00 mark (Murrey level [6/8]), supported by the central line of Bollinger Bands, and its breakdown will lead to the development of a decline to 155.70 (61.8% Fibonacci retracement), however, this scenario is less likely.

Technical indicators show the preservation of the uptrend: Bollinger Bands and Stochastic are directed upwards, MACD is stable in the positive zone.

Resistance levels: 200.00, 225.00, 250.00.

Support levels: 175.00, 155.70, 137.50.

Trading tips

Long positions can be opened above the 200.00 mark with targets of 225.00, 250.00 and stop-loss of 188.00. Implementation period: 5–7 days.

Short positions can be opened below the level of 175.00 with the target of 155.70 and stop-loss of 187.00.