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Solana Rebounds: Is This a Temporary Upswing or the Start of a New Ascending Trend Targeting $200?
The Solana (SOL) price has recently seen a significant rebound, sparking debate among traders about whether this surge is a temporary upswing or the start of a new ascending trend aiming for the $200 psychological barrier. As we delve into the current market dynamics and analyze recent price actions, it appears that while the immediate future remains uncertain, there are certain indicators suggesting a possible continuation of the upward momentum.
Despite experiencing an intense bearish pressure following its fall below the critical $170 mark, Solana’s DEX volume has surged to staggering figures, hovering between $2 billion to $3 billion. This remarkable uptick in trading activity suggests that traders are now focusing on the token’s short-term potential and potentially anticipating a reversal.
However, the recent downturn had led to a significant decline in active address count on the Solana network, dropping from 18.5 million in November to approximately 8.4 million in the present. This stark difference has raised concerns about the token’s underlying strength and its ability to sustain a longer-term uptrend.
It is crucial to note that even though the Gaussian channel remains bearish, the recent rebound has triggered a strong upward momentum, potentially paving the way for an extended rally. Furthermore, considering the current price action and the recent surge in volume, the possibility of a breakout beyond $175 in the short term appears less likely.
Despite this uncertainty, I believe that Solana’s resilience in the face of intense selling pressure may indicate a potential reversal. The token is expected to continue experiencing equal bearish and bullish pressures over the next few days as the market sentiment stabilizes. As the buying volume rises with easing market sentiments, it could further propel the SOL price above its current bearish range.
Regardless of the short-term uncertainty, the Solana (SOL) price remains under bullish influence, making it essential for traders to closely monitor the token’s performance and prepare themselves for potential long-term gains.
Source: coinpedia.org
