Solana Price Prediction: SOL Struggles to Clear $140 Despite Positive On-Chain Signals

Solana (SOL) has gone up by 4% in the past 7 days and is currently the only token in the top 5 with a positive performance during this period.

Bullish momentum has been accelerating, although bulls have encountered a strong sell wall at $140 in the past few days.

Trading volumes confirm that this is a highly contested area, as they have spiked by 250% in the past 24 hours alone. At $5.6 billion, they currently account for 7% of the token’s circulating market cap.

Similar to XRP’s exchange-traded funds (ETFs), Solana-linked vehicles have been attracting positive inflows for 25 days in a row¹ now and have only booked three days of negative inflows since the first spot product was launched in the United States.

This reflects strong accumulation by investors. As a result, the total assets managed by these ETFs have increased to $1.1 billion.

DEX Volumes and Weekly Users Rise – Is SOL Heavily Undervalued?

Meanwhile, on-chain data indicates that the Solana ecosystem has seen a spike in activity in the past week. According to DeFi Llama, DEX volumes increased for a fourth week in a row, rising to $34.4 billion – the highest they have reached since early November.

Pump.fun and Meteora, the largest meme coin launchpads in the Solana ecosystem, account for the highest share in trading activity.

Notably, Raydium, Solana’s largest DEX, has fallen behind these two despite being the most important player in this segment just a few months ago.

Pump.fun’s weekly revenues also spiked to their highest level since early November as meme coin traders seem to be coming back to the market. Is nature healing?

Data from Artemis² shows that weekly active users (WAUs) in the Solana ecosystem also jumped to 3.5 million last week. This is the highest point that this metric has reached since September, reflecting a strong shift in sentiment across the meme coin category.

The last time that WAUs reached these levels, the price of SOL exceeded $200. The market’s cautious attitude is probably what’s keeping a lid on the token at the time. Hence, if sentiment improves for some reason, Solana could make an explosive move, as on-chain data favors a bullish outlook at the time.

Solana’s Momentum Remains Positive – $160 Next?

All of this seems to be reflecting on the price of SOL lately, as the token has managed to withstand the pullback that most other tokens have suffered.

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

The market started the year with a strong boost that managed to push SOL out of its falling wedge. The token reversed its downtrend as a result, breaking its bearish price structure and opening the door to a potential climb to $155 at least.

The Relative Strength Index (RSI) remains on an uptrend, meaning that positive momentum is still strong. Hence, we could envision SOL delivering an extra 11% gain from here, as long as bullish momentum persists.

That said, if the RSI drops below the 14-day moving average, that could mean that SOL will first retest the $125 support before its next leg up starts.