Solana Price News: DEX Volumes Reverse Downtrend as SOL Bounces Back

Solana (SOL) has gone up by 3.5% in the past 24 hours, and trading volumes have surged by 154% as the token has bounced off a key support area once again.

This will be perhaps the most important week for what remains of the year for the market, as the Federal Reserve’s Open Market Committee (FOMC) will meet for the last time to make a decision on interest rates.

After a brief hiccup that pushed the odds of a rate cut during this upcoming meeting to less than 45%, analysts are now certain that the U.S. central bank will lower the federal funds rate by 25 basis points.

This has helped the market contain the sell-off that it started to experience since the October 10 flash crash, and most tokens seem ready to make a U-turn ahead of this key event.

Despite this spike in volumes, the most relevant price-related events for SOL tend to occur when the token hits $10 billion. Right now, daily volumes are sitting at $5 billion, so we are still quite far from that mark.

DEX Volumes Rise to Highest Level in a Month

On-chain data does signal some sort of recovery in trading activity, as DEX volumes have surged by 27% in the past week, according to data from DeFi Llama.

DEX Volumes on Solana – Source: DeFi Llama

This metric closed last week at $24 billion – the highest level it has reached in a month. This indicates that traders may be coming back to the market.

Considering that SOL has lost nearly half of its value since its latest local peak, investors may see this latest downtrend as an opportunity to scoop up some tokens at a low price, especially at a point when macroeconomic conditions seem to be improving.

That said, stablecoin reserves within the Solana blockchain have been rising rapidly and are moving close to their 6-month record. This metric has increased from $12.6 billion, back when SOL peaked at around $247, to $16 billion, meaning a 27% jump.

This indicates a risk-off move as investors have sold their SOL stash and moved their assets to stablecoins as they wait for the turmoil to pass. That kind of dry powder is exactly what could move the market back to its recent levels if the price starts to climb again.

SOL Makes Triple Bottom at $125

Looking at the daily chart, SOL has encountered strong support at $125 for the time being. This has been an attractive level for bulls to fill their bags again.

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

We saw a similar short-term accumulation at $180 back in October, but both comments from the head of the Federal Reserve back then and the bearish sentiment that came after the flash crash managed to push the price lower right after.

Apart from some tail risks like further surprises from the Trump administration, SOL could finally be reaching its local floor as the price has made a triple bottom at this level.

The Relative Strength Index (RSI) has been steadily climbing and remains above the 14-day moving average. Ideally, this momentum oscillator would have to climb above the mid-line to confirm that bulls are once again in control of the price action.

To fully confirm a trend reversal, SOL must rise above $160. This is a pivotal level that would invalidate the token’s bearish structure. If that’s the case, we could see SOL reversing toward its mean of $173 shortly.

Meanwhile, if bullish momentum is strong enough and pushes the token past its 200-day exponential moving average (EMA), that could catalyze a move to much higher levels – possibly to $200 within the next few months.