Solana (SOL) recently achieved a transfer volume of $3 billion for the first time since September 2024. The increased transaction activity on this network indicates a growing interest and may lead to a Solana price rebound.
According to Glassnode, although total transfer volumes are rising, Solana price has not joined the movement.
As shown by Glassnode data, Bitcoin’s transaction volume increased steeply in early November and peaked at the end of December. This occurs around the same time that several network enhancements and decentralized application (dApp) adoption are rising.
Nevertheless, contrary to climbing network activity, the $SOL price shows a different trend.
Solana’s Price Struggles Amid High Volume
As of press time, Solana traded at $125.52, a small leap of 0.40% over the past day. The trading volume also increased by 26.63% over the same period.
On the weekly chart of Solana ($SOL), the analyst’s technical analysis suggests a bullish possibility as the cryptocurrency is drawing what looks like a triple bottom pattern.
We can see this pattern by repeatedly testing a significant support level (shown by blue arrows). There has been a long history of buying support at the zone at the support price of $110.64.
Solana price tended to rebound every time it approached this level, a typical triple-bottom setup. This bullish reversal pattern indicates that the asset is moving from a downtrend to an uptrend.
Additionally, the last couple of touches of this support zone without any break below only add to the hypothesis that there is underlying buying pressure.
The analyst believes this area offers a compelling buying opportunity, and the price may increase. The key move after this would be to look for a decisive close above the nearest resistance at the $126.53 level. This could affirm the bullish reversal and an additional upside movement within the weeks following the breakout.
Technical Analysis Showing Solana on a Massive Downtrend
Daily charts show it is in a downtrend, with Solana price falling dramatically from previous levels close to $280, as we saw earlier in the year.
We see this downward movement since the price is below the key moving averages, the 50-day, 100-day, and 200-day Simple Moving Averages (SMAs). The current price is all below these averages. Hence, this is bearish. The picture reinforces the bearish outlook as the 50-day SMA has crossed below the 100-day SMA.
The Awesome Oscillator (AO) is shown on the chart. It is well below zero, suggesting strong bearish momentum. This momentum is in line with prices on recent charts.
It has broken support levels and is testing new lows, which could be broken to the downside.
Considering this analysis, Solana’s market is in a bear phase, per other market sentiments and issues related to cryptocurrency.
If the high trading volume translates into buying pressure, then investors should watch for it to support the levels that could reflect stability or falling chosen to reverse. On the contrary, the downdraft will worsen if these levels cannot be held.
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