- The Solana price prolongs its consolidation within the formation of a bear pennant pattern, suggesting that while a breakout is imminent, the move will likely delay.
- Despite sluggish price action, a recent uptick in SOL’s total volume locked (TVL) metric indicates rising demand for Solana-native DeFi services.
- Persistent geopolitical tensions between the United States and Iran continue to suppress investor risk appetite despite the announcement of a temporary ceasefire.
The Solana price shows low volatility during Wednesday’s U.S. market hours to currently trade at $83.79, with an insignificant gain of 0.02%. The neutral candle indicates slow down in recovery momentum as geopolitical uncertainty continued to pressurize broader markets. However, a notable spike in user activity and investors’ conviction in SOL’s sustainability has increased the price outlook for a potential breakout. Here’s how the ongoing price action of Solana’s daily chart supports recovery potential as well.
Solana Price Lags Strong Network Growth Amid Market Uncertainty
In the last two weeks, the Solana price witnessed a weak momentum recovery from $76.7 to current trading volume of $84.7, registering a gain of 10%. The buying pressure remains restricted due to escalating disagreements between the U.S. and Iran despite the recently announced 2-weeks ceasefire.
The geopolitical uncertainty has renewed risk-off sentiment across the crypto market as Bitcoin price stalls recovery at $76,000 and Ethereum price reverts below $2,400. The SOL coin follows similar momentum with its price constantly wavering around $38.6.
Despite the sluggish price action, the number of active users on the Solana network have rebounded sharply from 4.68 million to 5.57 million addresses. This jump indicates that users are engaging with decentralized applications (dApps), NFT platforms, or DeFi protocols regardless of the token’s price volatility.
However, the recent TVL data indicate that users are not just visiting the network as indicated by the address growth but are all committing capital. According to DeFiLlama, the TVL on Solana has bounced $5.37 to $5.9 over the past two weeks, indicating a 9.8% surge. This growth suggests that users are locking their funds into liquidity pools, staking protocols, or lending markets, rather than keeping them on exchanges to sell.
This divergence between stagnant price action and renewed network activity suggest that underlying value of the network is growing much faster than the current market price reflects.
Solana Price Risk Further Breakdown Amid Bear Pennant Pattern
Following a sharp correction in late January to early February, the Solana price trajectory has shifted to sideways around the $85 level. Interestingly, the consolidation resonated strictly within two converging trendlines, indicating the formation of a potential inverted pennant pattern.
This lateral trend is expected to stabilize the price action after a direction drop and recuperate the exhausted bearish momentum for the next breakdown. With today’s price drop, the Solana price trades at $83.42 level, suggesting a potential 3.4% fall ahead before a retest to the pattern’s bottom trendline.
If sellers flip with support into a potential resistance, the current correction could extend another 15% to $67.5, followed by a deeper dive to $51.
On the positive side, if the Solana price breaks above the triangle resistance at $90, the renewed buying pressure could chase the next significant resistance of $117.
