Solana, a major cryptocurrency, is currently testing a crucial supply level around $160 following a strong 15% surge since last Friday. The crypto market is experiencing heightened volatility as optimism grows, increasing token prices. In recent weeks, Solana and other major cryptocurrencies have been on a rollercoaster ride, and the coming weeks promise continued uncertainty as volatility shows no signs of slowing down.
Key metrics from DefiLlama reveal that Solana’s total value locked (TVL) has reached a new yearly high, now at around $6 billion, its highest level since September 2022. This TVL increase signals confidence in Solana’s ecosystem and decentralized finance (DeFi) offerings. Investors and traders are closely watching the market, with Solana’s performance likely to serve as a key indicator for broader market sentiment.
As Solana tests this crucial resistance level, the next few days will determine whether the token continues its upward momentum or faces another round of volatility. Solana is currently trading at $155 after a volatile session yesterday. The price successfully retested and now holds above the 200-day moving average (MA) at $151, signaling strong support for the asset.
This level has been a key indicator for traders, and maintaining it is crucial for sustaining the current bullish momentum. For bulls to keep the momentum going, SOL must stay above this 200-day MA and break through the $160 level. Such a move would likely confirm a bullish trend and propel Solana to test its yearly highs around $210.
However, the bullish momentum could weaken if the price fails to close above $160 and holds above the 200-day MA. In this case, a retracement is likely, with the price potentially dropping to lower demand levels around $140. This correction would serve as a consolidation phase before any further upward moves.
Traders are closely watching these key levels as they will dictate Solana’s next major move in the market.
