Solana's (SOL) price surged by 10% on Tuesday, February 4, as it strives to maintain levels above $200, reclaiming a market cap exceeding $100 billion. However, trading volume has dwindled by about 40%, now standing at $8.9 billion during the same timeframe.
In an interesting development, SOL whale activity is showing signs of a rebound after a recent dip while key trend indicators remain uncertain about the asset's future trajectory. The fate of Solana's momentum hinges on how it navigates critical support and resistance levels in the days ahead.
Solana Whales Are Making a Comeback
The number of Solana whales – addresses possessing at least 10,000 SOL – has surged to 5,120, up from 5,096 just four days ago. Although it falls short of the all-time high of 5,167 registered on January 25, this increase suggests sustained accumulation by significant holders, a signal of robust interest from major market players.
Monitoring SOL whales is vital as their trading activities can significantly influence price trends. The bolstering numbers indicate continued confidence from major investors, potentially underpinning SOL price stability or even future upward surges.
Solana Sees Signs of Weakening Downtrend
Solana's DMI chart displays an ADX of 33.5, up from 10.5 a few days ago, hinting at a strengthening trend. While it hit 36.2 recently, the current level signifies momentum growth, though the trend's direction remains ambiguous.
The ADX measures trend strength, with readings above 25 signaling a robust trend and above 50 indicating an extremely robust one. The recent surge suggests growing momentum, but the trend's course remains unclear.
The +DI, representing bullish strength, is at 14.7, climbing from 6 a day ago, while the -DI, reflecting bearish pressure, has fallen to 26.99 from 39 two days back. While bearish momentum is waning, bullish momentum remains subdued, leaving the trend undefined for now.
Solana Price Forecast: Will SOL Hold Above $200?
Currently fluctuating between $222.8 and $191, Solana's price is sandwiched between short-term moving averages below the long-term ones. Although the downtrend has weakened, the trend direction remains unpredictable, with a breakout in either direction poised to dictate the next significant move.
A push towards breaking the $222.8 resistance could propel SOL towards $244.99, with a substantial upsurge potentially lifting it to $271. Conversely, a decline with the breach of the $191.69 support level could set sights on $181.91, potentially extending down to $168.77.