Solana Readies for Potential Significant Move After Holding $120 Support
Solana (SOL) has shown a robust defense of the $120 support level multiple times since April, suggesting a possible strong upward movement in the near future, according to several traders.
$120 Support Level and Market Recovery
The price of Solana has repeatedly bounced off the $120 support level, leading many traders to believe that this could set the stage for a significant rally. Veteran trader Peter Brandt highlighted Solana’s price behavior on the daily chart, noting that SOL has been consolidating within a rectangle, with the $120 mark acting as a crucial support.
“This could become a rectangle capable of launching a sizable advance,” Brandt stated, emphasizing the importance of this support level.
Key Observations from Traders
TraderKoz echoed this sentiment, pointing out that SOL has successfully retested the $120 level three times recently, which underscores its significance for buyers. He advised that those looking to go long on Solana should wait for a retest of the zone between $135 and $140.
Among the top ten cryptocurrencies by market capitalization, Solana has experienced the highest growth over the past week, with an 8.82% increase, outpacing Bitcoin’s 6.45% rally.
Bullish Momentum and Future Targets
At the time of publication, Solana is trading at $148.50 and appears poised to continue its bullish momentum, targeting $160 in the short term, according to crypto trader CryptoZhi.
Futures traders have also been increasing their positions amid this bullish trend. Open Interest (OI) — which measures the total value of all outstanding futures contracts across exchanges — has risen by 12.5% to $2.34 billion over the past three days.
Network Activity and Adoption on the Rise
Data from DefiLlama shows that Solana’s total value locked (TVL) has seen a slight increase over the last three days, rising from $4.66 billion on September 18 to $5.15 billion on September 20. Additionally, daily transactions on the Solana blockchain have climbed significantly, from 4,630 to 8,023 between August 14 and September 19, according to a Dune Analytics dashboard.
The increase in TVL and on-chain transactions indicates growing network activity and adoption. Higher user interaction with the platform tends to increase demand for SOL, which is believed to positively impact its price.
Conclusion
The consistent defense of the $120 support level, coupled with rising network activity and adoption, suggests that Solana could be on the brink of a significant upward move. However, as with any investment, caution is advised, and thorough research is essential before making any trading decisions.
