SOL’s Price Rebound Coincides with Recent Surge in Solana
Following a notable drop in network activity post-July, Solana experienced a decrease in demand for SOL due to their strong correlation. Recent reports, however, indicate a resurgence in network activity, possibly signaling a recovery for SOL in the market.
Between July and early September, Solana’s on-chain volume decreased significantly. While daily volume surged past $2 million in July, it plummeted below $1 million by late August and early September.
During this period, Solana’s Total Value Locked (TVL) also took a hit. Peaking above $5.6 billion in late July, it dropped to as low as $3.8 billion in early August before recovering slightly. By the first week of September, TVL stabilized around $4.6 billion.
Recent data shows a remarkable recovery in Solana TVL, approaching levels close to the highs seen in 2024. These positive trends indicate a revival in confidence and on-chain activity within the network.
Will SOL Capitalize on Rising Sentiment for Solana?
A resurgence in Solana network activity should theoretically drive increased demand for SOL. Observing SOL’s price action, it appears this scenario is already unfolding. The cryptocurrency’s support range has been consistently following an upward trajectory.
During this month, SOL has tested the support line twice, with the latest test occurring within the past day. The support level indicates a high likelihood of upward movement during the weekend. At the time of analysis, the Relative Strength Index (RSI) showed a shift towards the middle range, though still below that zone.
Analysis of on-chain buy and sell volumes revealed a decline in activity over the last three days, likely due to bearish exhaustion and a lack of strong demand. Despite this, both bullish and bearish volumes remain evenly matched, creating a sense of uncertainty in market direction.
Overall, the buy-sell volume profile suggests significant directional ambiguity. While the current bullish trend supported by the ascending support line and Solana’s performance may seem promising, there is still a notable risk of a downward breakout beyond the support level.