Solana Price News: SOL On Track to Hit Key Support – Big Bounce to $350 Incoming?

Solana (SOL) has still delivered a 30-day gain of 22% despite the latest strong pullback as investors may believe that it will follow Ethereum’s footsteps to make a new all-time high during this cycle.

The official listing of the World Liberty Financial (WLFI) token on top centralized and decentralized exchanges (DEX) has captured the headlines and has attracted strong trading volumes to the networks where the asset has been listed.

Thus far, WLFI is available on the Ethereum, BNB Chain, and Solana networks and trading volumes have hit $2.6 billion in just a few hours, as the price rose by 9%.

Solana Fails to Capture $WLFI’s Volumes

Solana trading volumes have increased by 42% and currently sit at $6.7 billion, accounting for nearly 7% of the token’s market cap. Uniswap and Pancake Swap seem to have captured the majority of $WLFI’s volumes today, meaning that Ethereum and BNB Chain were the most benefited by the launch.

Top DEXs by Volumes for WLFI – Source: CoinMarketCap

This may have cushioned the retreat that ETH and BNB experienced during today’s decline compared to SOL as the two exhibit milder losses.

Meanwhile, Raydium (RAY), the largest decentralized exchange on Solana, has gone down by nearly 7% while top meme coins like Bonk (BONK) and Fartcoin (FARTCOIN) are down a similar 11% and 9% in the past 24 hours.

Solana started to experience strong selling pressure as it hit $216 last week just 7 days after the Chairman of the Federal Reserve, Jerome Powell, confirmed that the central bank is ready to start cutting rates this year.

Most market analysts agree that the Fed will cut its benchmark rate by 25 basis points during its September FOMC meeting according to data from FedWatch. This is positive for risky assets like cryptocurrencies as it increases liquidity and fosters more supportive market conditions.

SOL Approaches Key Support at $180

SOL has now been dropping for four days in a row after hitting that resistance. This could either be a sign that the market needs to flush out a significant number of existing positions to prepare for its next leg up or could be a “sell the news” moment.

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

The Relative Strength Index (RSI) shows an ongoing consolidation in a relatively tight range between $175 and $215. If we get a breakout in any direction, that may confirm the trajectory that the price will take in the next few days.

For now, the $180 level is the key area to watch. This level is in confluence with a key demand zone and a trend line support that has been tagged three times already, meaning that the market considers it a relevant level.

Another strong bounce off $180 could propel SOL to $270 in the near term. Meanwhile, if the rally accelerates, we could estimate a move toward $300 first and then to $350 based on the magnitude and strength of previous uptrends.