Solana (SOL) has experienced significant gains in the past week, reaching a 7-day high of 15.95%. The current trading price stands at $18.73 today, with slight gains. Although SOL is still 92.61% below its all-time high of $260, the recent increases in the past week have brought the price closer to the $20 level.
However, the price outlook for SOL this week indicates a bearish trend. After experiencing positive price movements over the past two weeks, SOL is currently in a sideways trend this week. A small red candle has formed on the weekly chart, indicating that bears are active this week. Additionally, SOL is still trading in the lower range of the Donchian Channel, which reflects a pessimistic sentiment.
The Relative Strength Index (RSI) is currently at 45.60, in the neutral zone between the oversold level of 30 and the overbought level of 70. This indicates the sideways trend for this week.
SOL’s Moving Average Convergence Divergence (MACD) is slightly above its signal line, showing convergence, which indicates a bearish signal. However, the MACD histogram bars are green, suggesting an upcoming bullish recovery. If the bulls prevail, SOL is likely to experience an upward trend in the coming weeks.
In terms of support and resistance levels, SOL is currently trading at $18.73, with no significant support found at the $15.43 level two weeks ago. This brings the altcoin close to the resistance level of $19.48. A breakthrough above the resistance level of $19.48 will help drive the price higher, reclaiming the psychological resistance level of $20. If this happens, SOL is likely to rise to the resistance level of $21.81 after breaking through $20. However, due to the pessimistic outlook on the weekly chart, a short-term price decline below $18 is possible.
Currently, there are several factors that could influence the price of Solana. These factors include macroeconomic factors such as inflation and crypto regulation in multiple jurisdictions. In addition to recent trends and developments in the ecosystem, utility and adoption are also important factors.
Another trend in the SOL ecosystem that is likely to influence price action this week is the volume of decentralized exchanges (DEX). According to a report from the on-chain analysis platform DefiLlama, Solana’s weekly DEX volume increased and ranked fifth on the list at the time of writing.
SOL’s DEX volume increased by 84%, with 24-hour volume surpassing $38 million. This increase is likely to contribute to the price movement in the coming week.
Despite the overall increase in DEX volume, the Total Value Locked (TVL) stagnates. DefiLlama shows that SOL’s TVL has remained stagnant since its decline in November 2022 following FTX’s collapse. The TVL currently stands at $273.26 million, with no significant increase in value despite the slight rise in SOL’s price on the daily chart.
In conclusion, SOL has recorded progressive gains in the past week, but the price outlook for this week indicates a bearish trend. Various factors, such as macroeconomic conditions, regulation, utility, and DEX volume, could influence SOL’s price movement in the coming weeks.
