Solana price has bounced back in the past few days as activity in the network improved and as investors bought the dip. After falling to a low of $95.15 earlier this month, the SOL coin jumped to a high of $132 on Monday. This article highlights the top reasons why SOL has rebounded and what to expect in the coming weeks.
Why Solana price is rising
The first main reason why the SOL price has rebounded is that some of the tokens in its ecosystem have bounced back in the past few weeks as investors bought the dip. Fartcoin price has soared by over 300% from its lowest point this year. Other top-performing Solana tokens were Popcat, Dogwifhat, and Vine. In most periods, SOL price does well when these assets are thriving.
Second, Solana price rose as the activity in its decentralized exchange (DEX) networks rose, leading to higher fees. The weekly volume handled by the top DEX networks in Solana has jumped by over 32% to $15.54 billion, making it the second-biggest chain in the industry. This growth has brought the cumulative volume in the last 30 days to over $47 billion, a figure that will cross $50 billion this year.
Solana has some popular DEX networks, including the likes of Orca, Raydium, Pump, and Meteora. These networks see higher volume when meme coins like Fartcoin and Dogwifhat are rising.
Third, Solana is the most active blockchain network in the crypto industry in terms of active addresses and transactions. Solana handled over 1.46 billion transactions in the last 30 days, much higher than Tron, which processed 250 million. Ethereum handled 35 million in the same period.
Solana also has over 101 million active addresses in the last 30 days, a figure that is higher than the other ten combined.
Meanwhile, Solana price rose as a small Wall Street company started to accumulate the coin. Janover, a small tech company in the real estate industry, raised $45 million last week and started to buy SOL It hopes to be the MicroStrategy of Solana.
Fifth, Solana price has jumped as investors predict that the Securities and Exchange Commission (SEC) will approve a spot SOL ETF. The odds of an approval stands at over 70% on Polymarket.
Solana price technical analysis
SOL price chart | Source: TradingView
The daily chart shows that the SOL price bottomed at $94.5 earlier this month and then bounced back to $132. It moved slightly above the key resistance point at $120, where it has failed to move below several times since last year. Therefore, the rebound could be part of a dead cat bounce, where an asset temporarily bounces back and then resumes the downtrend.
The token remains below the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) and the MACD have tilted upwards. Therefore, the price may still resume the downward trend and retest the key support level at $94.5 soon. A drop below that level will point to further downside in the coming weeks.
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