Solana (SOL) Experiences Remarkable Increase in Engagement: Can the Positive Momentum Persist?

Solana (SOL) Experiences Significant Interaction Surge

There was a notable increase in interaction on the Solana (SOL) network recently. This surge can be attributed to several factors, including the recent price increase, heightened NFT activity, and, most importantly, the Jito (JTO) airdrop. As a result, there was a substantial rise in the decentralized exchange (DEX) volume on Solana’s network.

Solana’s NFT Sales and Network Activity

Solana’s NFT sales witnessed a rise last week. Recent days revealed an increase in network activity, positioning the Solana blockchain as the leader in total transactions for November. Despite these positive developments, the token experienced a pullback in its price.

Solana Chart and Commentary

Throughout November, Solana traded within the yellow levels as depicted in the chart below. It climbed from $51.1 to $64 during this period. On December 7, SOL reached a peak level outside the range, hitting $77.78, but later experienced a decline alongside the broader Bitcoin market.

Following this decline, the Relative Strength Index (RSI) dropped below the neutral 50, indicating a shift in favor of bears. The On-Balance Volume (OBV) also exhibited signs of decline over the last three days, suggesting strong selling volume. Despite a price fluctuation on Monday, the 2-hour chart showed a response as the price fell to $64.18.

Analysis suggests that the downtrend continues in the two-hour time frame. Recent days saw a fall below the support level, prompting bearish sentiments. Fibonacci retracement levels (turquoise) drawn from the biggest rallies highlight points between $63.11 and $66.24 where an uptrend could potentially be triggered.

Solana Coin’s Future Outlook

After transactions in the last two days, Solana’s price gradually pulled back from $78 to $70. This decline coincided with a decrease in Open Interest (OI), indicating a potential loss of bullish trends among investors.

Despite this, the spot Cumulative Volume Delta (CVD) showed an upward momentum, offering potential relief to investors. While short-term sentiment appears bearish, the presence of CVD in spot markets suggests healthy demand for the token. Investors may, therefore, interpret the recent pullback as temporary and lacking depth.

In a broader time frame analysis, the region between $60 and $65 is considered the first support level where recovery could potentially resume for the bulls.