Solana’s price has been defended at the $118 zone multiple times since the start of March 2024. Binance’s buying back of SOL at $118 after dumping at $135 could shape Solana’s short-term price outlook. The $118 price level has served as a crucial support level for Solana, preventing further price drops. Despite being in a critical zone, previous attempts to stabilize SOL’s price at $110 and $100 could come into play now. Traders have failed to reclaim the $118 support after Trump’s ‘Liberation Day’ tariffs, leading to potential bearish momentum in the market.
At the moment, both the MACD line and Signal line are below zero, indicating increased selling pressure that could result in further losses for SOL. However, the histogram shows some positive momentum, suggesting a potential slowdown in the downward movement. Reclaiming the $118 support could lead to a move towards the descending trendline at $130, with further momentum pushing towards targets near $150 or higher. The market’s next move depends on how it reacts to the $118 zone, with a failure to hold below indicating more bearishness and a potential reversal if reclaimed.
The on-chain activities of Wintermute, Binance, and Coinbase have influenced Solana’s price movements, with a strategic buy-back operation potentially creating a market floor at $118. Binance initiated SOL purchases through Wintermute, indicating a positive market sentiment for a recovery towards $135 or higher if bullish conditions return. However, a lack of market confidence could lead to another price decline, despite Binance’s buying activities. Solana’s daily DEX volume has surpassed that of Ethereum, BSC, and Base, indicating strong user activity on the network.
The combination of elevated DEX usage and the creation of new tokens on Solana could potentially drive SOL’s price towards $130 as it attracts more users. Profit-taking operations and market movements, however, could lead to a price reduction to $100 as the market adjusts. Overall, Solana’s price outlook remains uncertain, with the $118 zone playing a critical role in determining its future movements. Traders will be closely monitoring the market to see how it reacts to key support and resistance levels in the coming days.
