Solana price research indicates a three-day surge from $127 to $147, or a 16.6% increase. This positive turnaround corresponds with the broader market rise following the US Fed’s decision to decrease interest rates by 0.5%. Will the broad sentiment be enough to propel SOL past $200, or will sellers respond with another dump?
Solana Price Analysis: Why SOL Stays Trapped Below $200
The Solana price analysis has shown a sideways trend below the psychological level of $200 for more than six months. This consolidation revealed three failures by SOL buyers to break over the overhead barrier, indicating a heavy supply zone. Here are four reasons why this altcoin is struggling to get enough traction for a $200 breakthrough.
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Low probability of Solana ETF approval dampens market hopes.
Solana Meme Coin Boom Increases Network Activity.
Development Activity Decline Threatens Bullish Prospects.
Solana Price Analysis: Key Support Levels are Under Pressure
Low probability of Solana ETF approval dampens market hopes.
According to Polymarket data, the chances of a Solana ETF getting approved in 2024 have fallen to just 3%. Following the success of Bitcoin and Ethereum spot ETFs, Solana was regarded as the greatest contender for a US-based crypto ETF. The prospective approval would allow institutional investors broader access to this asset, increasing demand for SOL coins. However, as the SEC continues to avoid approving new ETFs, the Solana price analysis may struggle to get over $200.
Solana Meme Coin Boom Increases Network Activity.
The SOL blockchain had a significant increase in network activity and revenue during the last meme cycle. According to Dune Analytics statistics, the Solana Meme currency generator Pump Fun had generated $107,354,482 in total revenue as of press time. The falling interest in the meme cryptocurrency sector has had a substantial impact on network advancement; thus, a resurrection is critical to initiating a bull run.
Development Activity Decline Threatens Bullish Prospects.
Since August 2024, Solana’s development activity has declined significantly, with a current seating of 159. Development activity is an important indicator that measures the level of innovation and improvement on the network. The figure below from Santiment may reflect slowed developer activity and diminished blockchain involvement, which will have a negative impact on the SOL price projection.
Solana Price Analysis: Key Support Levels are Under Pressure
Veteran trader Peter Brandt’s Solana price research identifies $129 as a critical support level amid the present consolidation trend. If the support collapses, the selling pressure might increase, causing the SOL price to fall to $80.
Thus, the possibility of a rectangle formation could have a considerable impact on the Solana price estimate for a $200 breakout.
