Solana Leads Market Recovery with 16% Weekly Gain, Reclaims DEX Dominance Over Ethereum
As global economic uncertainty and trade tensions continue to cause volatility in the crypto market, Solana (SOL) has proven more resilient than many of its counterparts, gaining 16% over the past week. On Thursday, SOL’s price surged more than 4%, outpacing the broader market, which saw the CoinDesk 20 rise by approximately 3%.
Solana’s price has found a key support zone between $125 and $127, effectively holding off several attempts at downward movement. Meanwhile, the $133.50-$133.60 range has emerged as a significant resistance point, according to CoinDesk Research’s technical analysis.
Blockchain data also highlights a crucial pivot point, with over 32 million SOL (representing more than 5% of its total supply) accumulating around the $129.79 level. This suggests that this price point will play a pivotal role in future price movements.
Technical Analysis Overview
- Support and Resistance Zones: SOL has established a robust support range between $125 and $127, rejecting multiple attempts at further declines. The $133.50-$133.60 resistance zone continues to prevent upward momentum.
- Price Resilience: After hitting a low of $123.64 on April 16th, SOL has bounced back 4.5%, reaching $135.57 and establishing an upward trend.
- Spot ETF Launch: On April 16th, Canada launched its first spot Solana ETFs, issued by prominent asset managers such as 3iQ, Purpose, Evolve, and CI, leading to an increase in institutional interest.
- DEX Dominance: Solana has regained its lead in decentralized exchange (DEX) activity, surpassing Ethereum. The past week saw a 16% price increase, with Solana’s total value locked (TVL) rising by 12% to $7.08 billion.
- Volume and Accumulation: The afternoon of April 16th saw significant accumulation, with over 3 million units traded as SOL broke through the $130 resistance level. This surge indicates strong buying interest.
- Fibonacci Levels: The Fibonacci retracement from the April 14th high of $136.01 to the April 16th low suggests that the rally has successfully reclaimed the critical 61.8% level.
- Price Correction: In the final 100 minutes of trading, SOL experienced a sharp correction, dropping from $134.11 to $130.81, a 2.5% decline. The sell-off intensified between 14:03 and 14:07, with volume spiking to over 92,000 units in a single minute.
- Breakdown and Risk: A significant breakdown occurred at the $132.00 support level, leading to cascading liquidations. As prices have now retraced beyond the 78.6% Fibonacci level, the market may test the $125-$127 support zone if bearish momentum continues.
