Crypto traders have zoomed in on the emergence of a strong support line on Solana’s price chart, leading to expectations of potential growth in the near future.
Solana Support Level Analysis
Veteran trader Peter Brandt noted in a September 20 post that SOL's price held support at $120. “Looks like $SOL held support at $120,” wrote Brandt, referring to Solana’s price action in a rectangle on the daily chart, with the lower limit at $120 acting as support since mid-April. Fellow trader TraderKoz made similar observations, noting that SOL’s price has successfully retested $120 three times recently, reinforcing the importance of this level for buyers. According to TraderKoz, those looking to go long on SOL should wait for a retest of the zone between $135 and $140.
Daily and Weekly Indicators
Among the top ten cryptocurrencies by market capitalization, Solana has seen the highest growth over the past seven days at 8.82%, ahead of Bitcoin (BTC) with a 6.45% rally, according to data from CoinMarketCap. At the time of publication, Solana is trading at $148.50 and appears ready to extend its ‘bullish momentum’ to hit its short-term target at $160, according to crypto trader CryptoZhi. Futures traders have also been expanding their positions amid the bullish pattern. Open Interest (OI) — a measure of the total value of all outstanding or 'unsettled' futures contracts across exchanges — has risen 12.5% to $2.34 billion over the past three days, according to Coinglass data.
Increased Activity and Its Impact
Additional data from DefiLlama shows that Solana has seen a decline in total value locked (TVL) since late August, though there was a slight increase over the last three days from $4.66 billion on September 18 to $5.15 billion on September 20. Similarly, data from the Dune Analytics dashboard shows that daily transactions on the Solana blockchain climbed from 4,630 to 8,023 between August 14 and September 19. The increase in TVL and on-chain transactions indicates growing network activity and adoption. Higher user interaction with the platform leads to increased demand for SOL, which is believed to positively impact its price.
Attention to the $120 support level and increasing activity indicators corroborate the possibility of further price growth for Solana. Buyers continue to monitor the situation, anticipating new retests of key levels.
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