Solana Shows Potential for Rebound Amid Market Optimism – What to Expect

Since the bull market kicked off in late 2023, Solana (SOL) skyrocketed from $20 to $210 by March 2024, marking an extraordinary 850% increase. However, by Q2, SOL’s value dipped below $150, breaking a long-term support trendline.

Now, SOL is showing signs of rebounding, sparking optimism about its future potential. Market analyst Ansem pointed out the bullish trend in the SOLETH ratio, which compares SOL’s performance to Ethereum (ETH).

this is a rocket ship ready for liftoff pic.twitter.com/6pMeEXJIR1

— Ansem 🐂🀄️ (@blknoiz06) July 29, 2024

Ansem suggested that SOL could retest the $210 mark if it stays above $160.

Recent data indicates a significant recovery in Solana’s network activity, with daily active addresses surging past 2.2 million in July, reminiscent of the activity seen when SOL reached $210 in March.

This increased network traction might support SOL’s effort to reclaim its previous trendline support.

However, CryptoQuant’s technical indicators warn of a potential short-term price reversal due to overbought conditions. The Federal Reserve’s rate decision on July 31 could be a pivotal moment, with a dovish stance potentially boosting SOL, while a hawkish decision might hinder its progress.