Solana (SOL) has witnessed an increase of around 18% in value over the past month, maintaining a positive trend despite some indicators showing signs of weakening momentum.
Solana continues to lead in decentralized exchange (DEX) volume and blockchain revenue rankings, solidifying its strong position in the overall ecosystem. The technical analysis highlights the current status of Solana.
Although the bullish structure of Solana remains intact, certain momentum indicators are showing signs of weakening. The Ichimoku Cloud chart indicates that the price is testing support near the top of the green cloud. The Kijun-sen and Tenkan-sen lines have flattened, suggesting a decline in short-term momentum. While Senkou Span A remains above Senkou Span B, the narrowing gap indicates a weakening bullish momentum.
Institutional momentum is growing, with DeFi Development Corp planning a significant investment in Solana and a report from Coinbase noting an increase in corporate treasuries moving to Solana.
Despite the weakening BBTrend indicator and decreasing momentum, it has remained positive for 17 days, indicating overall positive momentum. However, a continuous decline in BBTrend could lead to further loss of momentum, while a recovery from buyers might result in a new breakout attempt.
Solana continues to dominate DEX volume, surpassing $20 billion in trading volume in the past week. Solana-based applications also lead in terms of blockchain revenue and fees, with six out of the top 10 chains and protocols connected to the Solana ecosystem.
The current EMA lines for Solana remain bullish, with short-term EMAs above long-term ones. While trading close to a critical support level at $145, a failure at this level could lead to a price drop to around $133.82. A deeper selloff could see the price declining further to $123.41, weakening the bullish structure.
A potential breakout above $157 could indicate a strengthening bullish momentum with a target of $180, offering approximately a 23% upside from the current levels.