Solana Price Forecast: Can BisonFi’s Success Help SOL Stay Above $120?

Solana (SOL) has bounced off the $125 mark in the past couple of days as traders’ interest in its ecosystem seems to be rising.

Solana’s Weekly Active Users and Transactions – Source: Artemis

Data from Artemis shows that weekly active users (WAUs) rose from 2.9 million during the first week of January to 4.9 million last week – a 69% increase.

BisonFi Leads DEX Volumes to Print a 43% Weekly Jump

Weekly DEX volumes have jumped by 43% in the past week as week, led primarily by a new protocol called BisonFi.

This is a new automated market maker (AMM) backed by Solana’s largest digital asset treasury (DAT), Forward Industries, that caters primarily to institutional traders.

Top 5 Solana DEXs by 24H Trading Volumes – Source: DeFi Llama

Data from DeFi Llama shows that this platform is already dominating the DEX segment with 24-hour volumes of $1.1 billion, while its 7-day volumes have jumped above $4 billion, already nearing the network’s leading protocols like HumidiFi and Pump.fun.

Meme coin launchpads like Pump.fun and a newcomer called Bags have also been partially responsible for most of this uptick.

According to Jupiter’s data, Pump.fun’s fees have been progressively rising in the past three weeks, reflecting rising interest from meme coin traders.

In addition, a new launchpad called Bags, specialized in AI tokens primarily, has surpassed well-established players like LetsBonk.fun, and Meteora in the past 7 days with over $1 billion in trading volumes.

Daily Sell Signals Pile Up But SOL Finds Support at $125 Temporarily

Solana’s struggles started during the latest bullish cycle as the token was unable to make a new all-time high, even though both Ethereum (ETH) and BNB (BNB) managed to reach new records.

SOL/USD Daily Chart (Binance) – Source: TradingView

The network’s use cases have struggled to move past low-level TradFi (meme coins), and that could be limiting the token’s potential to reach new heights.

Despite the positive on-chain signals mentioned earlier, SOL has been on a downtrend and has sent three consecutive sell signals in the daily chart.

The last of these popped up on Tuesday, as the token hit a key support at $125. Right now, we are seeing a mild bounce off this mark, but this signal is still quite relevant as it flashed at what has been an important demand zone.

If we get a bearish breakout below $125, this could mean that SOL is ready to move to the low 100s. This would mean a 60% drop from its recent peak, and would confirm that this altcoin has entered a “crypto winter”.

Large Order Blocks at $120 Catapulted SOL the Last Time

Heading to the 4-hour chart, we have two consecutive sell signals popping up this week. This increases the technical relevance of the $125 support.

SOL/USD 4H Chart (Binance) – Source: TradingView

If this demand zone falters, the key support area to watch would be $120. The token got a strong boost the last time it hit this mark and managed to climb to $145 right after.

Due to its psychological relevance, another strong bounce could open up another attractive short-term trade, even though the upside potential this second time could be limited.

In both time frames, bears seem to be in full control of the price action. Hence, it would be wise to take directional trades to the downside only, unless the $145 level is broken, in which case the downtrend would be invalidated.