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Solana Maintains $150 Price Target Despite $1 Billion Pullback

By:
Ibrahim Ajibade
Updated: Feb 19, 2024, 11:46 UTC

Key Points:

  • Solana (SOL) price stumbled 10% to a local low of $105 at the weekend after hitting a new 2024 peak of $118.44 Thursday Feb 15. 
  • SOL trading volume has declined by $1 billion during the price downtrend between Feb 15 and Sunday, Feb 18, signaling minimal selling pressure and positive conviction among holders. 
  • The Parabolic SAR technical indicator currently shows that the bulls are still largely in control of the SOL market. 
Solana (SOL) price

In this article:

Key Insights:

Solana (SOL) price soared to a 2024 peak of $118.44 on Feb 15 as bullish headwinds from crypto market rally spread toward the layer-1 sector.

Interestingly, as SOL price rejected from critical $120 resistance,  investors have increasingly refrained from trading rather then enter a large-scale sell-off at the time of writing on Sunday, Feb 18.

Are the bulls revving up for a breakout towards $150 in the week ahead? 

Solana Bulls Refrain from Selling Despite Price Pullback

Solana, like other top-ranked layer-1 coins like and Avalanche (AVAX), Ethereum (ETH) was at the forefront of the market rally last week, soaring to a new 2024 peak of $118. 

Increased demand on the Solana DeFi ecosystem and positive sentiment across the overall market have been major drivers of the rally. 

However, after hitting the local top on Feb 15, SOL price has suffered a 10% pullback to a local low of $105 at the weekend.  

But interestingly, on-chain data trends show that the majority of current SOL holders maintained a bullish outlook amid the Solana price pullback.

Indicatively, the Santiment chart below shows the Solana trading volume at $2.7 billion at the peak of last week’s rally of Feb 15. But as prices began to drop, SOL holders have increasingly refrained from trading. 

The latest reading shows that SOL trading volume is down by $1.1 billion compared to last week’s peak, with only $1.6 billion worth of trades recorded at the close of Feb 18. 

Solana (SOL) Daily Trading Volume vs. Price | Source: Santiment
Solana (SOL) Daily Trading Volume vs. Price | Source: Santiment

Effectively, SOL trading volume has now dropped by 40% between Feb 15 and Feb 18. But notably, Solana price only declined by a maximum of 10% during that period. 

When trading volume declines significantly faster than price downtrend as observed in the Solana charts above, strategic investors interpret it as a sign of dominant positive conviction that the consolidation will be quickly followed by another rebound phase. 

Also, with critical fundamental factors, such as rising demand from increased DeFi activity still trending upwards, it lends further credence to the bullish outlook. 

Solana Price Forecast: $150 Target in Focus

The curtailed selling pressure observed at the weekend puts Solana in a prime position for another rebound phase toward $150 in the days ahead. 

However, the upper Bollinger band indicator shows that the bulls face initial resistance at the previous peak around $119

If the bullish scenario plays out as predicted, SOL price could enter a major breakout above $120, putting the $150 target in firm focus.  

Solana (SOL) Price Forecast, Feb, 2024 | Source: TradingView
Solana (SOL) Price Forecast, Feb 18, 2024 | Source: TradingView

On the flip side, the bears can summarily negate this bullish Solana price forecast if they force a reversal below the $90 area. However, as outlined by the lower-Bollinger band, the buy-wall at $91 could offer major support in the short-term.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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