Solana’s price retreated for two consecutive days on Monday, hitting its lowest point since January 3, as risk aversion spread through financial markets after Donald Trump threatened new tariffs on key NATO members.
Summary
- Solana price has formed a cup and handle pattern on the daily chart.
- The continuous descent is part of the formation of the mango section.
- Third-party data shows Solana transactions are skyrocketing.
solana (SUN) token retreated to a low of $130, down 10% from its high point this year. This pullback raised its market capitalization to $80 billion, making it the sixth-largest cryptocurrency in the industry.
On the positive side, Solana has strong technicals and fundamentals that can help support its recovery in the near term. For example, Nansen data shows that it is the most used blockchain in the crypto industry.
It handled more than 1.86 billion transactions in the last 30 days, an increase of 1.8%. Its transaction costs were much higher than other networks such as Ethereum, BNB Chain, Tron, and Polygon combined.
Solana also had more than 72 million active addresses in this period, an increase of 18%. Their active addresses were much larger than other popular chains.
Additionally, Solana’s DEX volume jumped to over $114 billion in the last 30 days, far more than Ethereum, Base, and BSC Chain combined. All of these metrics caused an increase in network fees, which amounted to $18.5 million.
Solana is also becoming a popular chain in areas other than meme coins. For example, it has become a major player in the tokenized stock industry, with a total value locked exceeding $1.6 billion.
This growth is likely to accelerate after the network releases the Alpenglow update later this quarter. This update will introduce new capabilities and higher speeds.
Meanwhile, Solana’s spot ETFs have continued to see inflows this year. They have added more than $97 million in inflows in January, and total assets have increased to $1.2 billion.
Solana price technical analysis.
The daily time chart shows that the Solana token retraced sharply after reaching the key resistance level of $146, which was a few points below the 23.6% Fibonacci retracement level.
This pullback is likely part of the handle section of the cup and handle pattern, a common bullish continuation pattern. The currency remains in green, a sign that the rebound remains intact.
Therefore, the coin will likely bounce to the 50% Fibonacci retracement level at $185, an increase of 40% from the current level.
