Solana‘s price, as of September 20, has seen a slight decline of approximately 3.47%, trading around $108.79. This drop from $112.39 has brought Solana closer to a crucial support level near $107.50. Market participants are keenly observing whether this zone can stabilize Solana’s price action or if further corrections are inevitable.
Signals of Recovery in the Longer Term?
In broader timeframes, Solana has shown signs of recovery after its recent downward movements. The cryptocurrency’s significant breach of the $96 resistance zone indicates diminishing selling pressure and a potential shift in market control towards buyers.
“Maintaining above the prior breakout level while sustaining demand between $80 and $96 strengthens the possibility of targeting higher resistance zones,” stated HK.
Does $115 Present a Barrier?
Yes, in the shorter term, the focus remains on the $113 to $115 zone. Analyst DocXBT noted that Solana is heading towards a key intersection at $115.58, where the horizontal resistance meets the weekly upper VWAP band.
“A weekly close above $115 could support a broader trend shift,” mentioned DocXBT.
As Solana tests the descending upper VWAP band post a bounce from the $60 to $80 zone, reclaiming $113 to $115 as support is crucial for confirming upward momentum. Failing which, prices might turn back towards the demand area between $80 and $90.
Key Levels: Support and Resistance
The initial support is pegged at the $105 to $100 range. Below this, the $96 level becomes significant again. On the upside, $112 to $115 stands as the short-term primary resistance. Breaking this would direct attention towards $125, followed by the $140 to $145 zone.
- Immediate support: $105 to $100 – crucial for maintaining short-term balance.
- Primary support: $96 – previous breakout level.
- Main resistance: $112 to $115 – critical for confirming the rally.
- Upper target range: $125 to $145 – next supply area.
Notably, the $107 to $108 band remains a focal area in short-term assessments. Its protection might limit further pullbacks; otherwise, the $102 to $104, followed by $97 to $100, could face renewed tests.
On-Chain Data Shows Robust Growth
Aside from technical indicators, on-chain data points toward optimistic trends. Solana has been seeing a surge in user engagement and stablecoin activities, with daily active stablecoin addresses hitting approximately 888,000 in September, reflecting a 269% annual increase.
Despite the uptick in network usage providing fundamental support for price recovery, it doesn’t automatically translate into a rapid price surge. Solana’s path to forming a stronger technical outlook hinges on overcoming resistance around the $115 level, ensuring sustained momentum above this threshold.
