Solana: After retracing 31% post March rally, SOL finds support here

Solana’s native cryptocurrency SOL kicked off the first week of April with a 31% correction after the peak of its latest bull. However, it encountered support near the $112 price level, resulting in some bullish recovery.

SOL traded at $121 after at the time of this press, after a 6.42% rally in the last 24 hours. The bullish performance is a welcome relief from the bearish correction which pushed the price by roughly 31% from its recent top. SOL’s last bull run kicked off from a low of $78 on 14 March, and peaked at $1243 on 2 April.

Source: TradingView

SOL’s latest correction allowed the price to cooled down from heavily overbought conditions according to the RSI and the MFI.  Meanwhile, SOL’s 1-hour chart reveals that the pullback pushed the price into oversold territory during Thursday’s trading session. This triggered short-term accumulation and aided a price bounce back from the day’s low of $110.

Bad news…

The price retested support near the $110 price level after the bounce back was disrupted by news that Binance had suspended SOL withdrawals due to technical challenges with the Solana network.

However, the price managed to recover after the support retest, yielding a rally back above the $120. The short-term rally peaked at $122 before bowing to strong resistance near the 0.272 Fibonacci level.

Source: TradingView

Solana  reported multiple instances of disrupted services in the last few months, including a 17-hour downtime in September last year which had resulted in a substantial SOL selloff. However, Solana’s social media platforms did not take note of any network disruptions on its side, suggesting that the problem was localized to Binance only.

SOL’s on-chain metrics

SOL experienced a significant drop in trading volumes in the last few days, during which the price entered the correction phase. Meanwhile, its developer activity metric shows an increase in activity in the first week of the month. This coincides with the Solana Riptide hackathon which aims to improve the network’s security.

Source: Santiment