What You Need to Know:
- Price Movement: Solana (SOL) saw a 5% increase in just 24 hours, with the price moving from $172.53 to $181.39 due to strong trading volume and favorable DeFi metrics.
- Market Environment: Increased geopolitical tensions and trade disputes among key economies have injected volatility into the market, leading investors to flock towards certain cryptocurrencies for stability.
- DeFi Growth: Solana’s DeFi ecosystem has showcased impressive development, with its total value locked rising from $7.5 billion to $9.6 billion in May, bolstering investor confidence.
Global markets are feeling the pressure of rising trade disputes, affecting both traditional assets and cryptocurrencies alike. In this turbulent atmosphere, Solana has distinguished itself as a leading asset, achieving over a 5% gain recently and securing robust support above the pivotal $180 mark for the first time since February, according to CoinDesk Research’s technical analysis data model.
Technical Analysis Insights:
- SOL established a clear upward trend supported by notable volume at the $173 mark, resulting in an explosive breakout around 19:00, showcasing a 5.8% increase on 2.5M volume, more than double the average for the past 24 hours.
- Following a peak of $184.72, SOL retraced but retained its support above $180, indicating persistent bullish sentiment with a new resistance level established at $184.
- In the hour leading up to this report, SOL encountered considerable price swings, reaching a maximum of $182.47 before a pronounced selloff brought it down to $180.21, marking a 1.24% decrease.
- The price fluctuations depicted a clear distribution pattern with volume surging past 79,000 units during moments of sharp corrections, setting a newly established resistance area between $182.00 and $182.50.
- After finding a support point just below $180.37, SOL made several attempts at recovery towards $181.50 but faced renewed selling pressure, indicating a period of market consolidation between $180.80 and $181.40 as traders evaluate the sustainability of the ongoing upward movement.
