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Solana breaks through 250 barrier

Solana breaks through 250 barrier

Grafa2024/11/27 06:40
By: Mahathir Bayena
SOL+0.40%REKT0.00%

Solana (CRYPTO:SOL) has achieved a milestone by closing above the $250 resistance level on the weekly timeframe for the first time.

Crypto analyst Rekt Capital identified this as a crucial development in Solana’s price action, marking a potential shift in market dynamics.

The $250 level has historically served as a key resistance, previously tested during Solana’s late 2021 peak at $260, before a prolonged bear market followed.

If Solana sustains this breakout and flips $250 into support, it could enter price discovery mode, with analysts eyeing potential targets of $300, and $350–$400 based on Fibonacci extensions and historical trends.

Failure to maintain support at $250 could lead to retests of lower levels, such as $202.82 or even $135.97, though the strong bullish momentum makes a deeper retracement less likely.

As of press time, Solana was trading at $231.93, reflecting a 24-hour decline of 8.99% and a 4.80% drop over the past week.

Price fluctuations have ranged from $231.87 to $256.23 in the past day and $232.43 to $263.21 over the past week.

Solana’s 24-hour trading volume surged by 25.94%, reaching $11.99 billion, indicating heightened trading activity despite recent pullbacks.

However, Open Interest for Solana decreased by 7.57%, now sitting at $5.18 billion, reflecting a reduction in leveraged positions amid price volatility.

The OI-Weighted Funding Rate remains positive at 0.0130%, signaling sustained optimism in the derivatives market.

Spikes in funding rates during November’s rallies indicate leveraged long positions, highlighting bullish sentiment during key price movements.

On-chain metrics suggest growing ecosystem activity, with Solana’s Total Value Locked (TVL) in decentralised finance at $9 billion, despite a 3.29% decline over the last 24 hours.

The network’s stablecoin market cap sits at $4.598 billion, with $7.16 million in fees and $3.58 million in revenue generated during the same period.

Solana’s ecosystem remains vibrant, with 6.07 million active addresses recorded in the past 24 hours, contributing to a staggering 52.71 million transactions.

Whale activity and inflows of $1.75 million continue to show sustained interest in the network, even amid short-term price corrections.

The coming weeks will determine whether Solana can maintain support above $250, paving the way for further bullish momentum and potential new highs.

At the time of reporting, Solana price was $233.34.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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