Solana peaked at $157 in April following several notable increases. The month marked a significant turn from its previous downtrend. However, current price action suggests that the uptrend is gradually coming to a grinding halt.
The asset saw reduced trading volume, affecting volatility. It is worth noting that the reduced price movement started in the fourth month of the year and is ongoing. A closer look at the one-day chart shows a slight decline over this period.
SOL remained in a range-bound movement over the last fourteen days, trending between $154 and $142. The extended period of this trend indicates that its end is near. Nonetheless, traders’ sentiment at the time of writing may reflect how soon a breakout will happen.
Investors Are Silent
Data from DefFiLlama shows that Solana barely saw any notable change to its total locked value between April and the time of writing. The chart below shows it is almost flat as traders interact less with staking projects. It may signify a huge uncertainty across the asset. This indicates that TVL played no role in the coin’s massive increases.
However, another metric showed notable changes: chain revenue. The indicators indicate increased interaction between developers and traders with the blockchain. A direct impact on price is significant when comparing surge spikes translated to price increases.
One such event happened on Apr 9 when revenues soared by almost 50%. It registered a 4.68k SOL the previous day and 6.32k during the session under review. The coin surged from $105 to $121, gaining 13%. It is worth noting that the altcoin saw notable upside movement in the days leading up to the massive gains.
Applying the same metric to the ongoing price trend, chain revenue is almost flat. It reflects on prices as the asset sees less price movement. The lack of an increase in revenue may point to further range-bound movement. However, the one-day chart points to an impending shift.
Solana is at a Chokepoint
The Bollinger bands are reacting to the massive decline in volatility. They are constricting: the upper SMA and lower SMA are coming together. While Solana trades above the middle band, it does not guarantee any upward movement soon.
The moving average convergence divergence prints sell signals at the time of writing. It displayed a bearish interception between the 12-day and 26-day EMAs. Traditionally, such interceptions may point to significant declines in the coming days. It is worth noting that there is no notable buying pressure, as indicated by the relative strength index.
Will SOL Test $120?
Data from DeFiLlama indicates that investors‘ are largely sitting on the fence. There is no massive move as TVL remains almost the same. Nonetheless, the chain has remained largely the same since Apr 24, pointing to no huge change in sentiment.
However, the one-day chart hints at a breakout but points to a significant decline. Nonetheless, the Fibonacci retracement level highlights some key marks to watch. Since it lost the 38% fib mark, it traded above the $140 support. It may lose the barrier when the breakout happens.
The asset may hover around the 23% fib level at $132. The highlighted fib mark may be the last barrier before a slip below $120.
