Solana Price Declines 1.3% as Key Resistance at $235 Approaches
In the past week, Solana's price has mirrored broader market trends, experiencing a 1.3% decline in the last 24 hours, leading SOL to retest a critical support level at $226. Experts suggest that breaking the $235 resistance could indicate the continuation of an uptrend observed over the past six weeks.
Potential for New All-Time Highs
Market analysts highlight Solana's resilience, noting a rebound towards the $230 mark after dipping into the $200 zone. If SOL maintains momentum and surpasses $235, it may break current price compression and target a previous high of $264 soon. Glassnode co-founders Yan Happel and Jan Allemann report that Solana’s daily Relative Strength Index (RSI) remains neutral, suggesting potential upward movement without being overbought.
They advise investors to also watch tokens like Jupiter (JUP) and Dogwifhat (WIF) for potential upward momentum.
Currently trading at $226—13.5% below its all-time high of $263 reached on November 23—Solana's price action is closely linked to broader market dynamics, especially regarding anticipated regulatory changes under the incoming Trump administration. Analysts believe Trump's pro-crypto stance could increase the likelihood of approving spot Solana exchange-traded funds (ETFs) filed by various asset managers earlier this year.
Such approvals could facilitate increased institutional adoption, potentially impacting Solana's price and serving as a catalyst for new highs in upcoming months. Comparative trends in Bitcoin indicate that similar institutional actions led to significant price increases; Bitcoin achieved a record peak above $73,000 just two months after ETF approval in January.
Solana Leads in Developer Growth
A recent report by Electric Capital reveals that Solana has emerged as the leading ecosystem for new developers in 2024, marking the first time since 2016 that any ecosystem has surpassed Ethereum in attracting new developers. In 2024, Solana welcomed 7,625 new developers and recorded an 83% year-over-year growth in monthly active developers.
The platform's appeal is particularly strong in Asia, with India ranked as the top country for new developers, followed by the US, UK, Canada, and China. Solana's focus on low-fee use cases positions it as a leader in decentralized exchanges (DEX) and non-fungible token (NFT) transactions, accounting for 81% and 64% of respective transactions across all chains.
Featured image from DALL-E, chart from TradingView.com