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The Solana price pumped 4% in the past 24 hours to trade at $144.12 as of 11:14 p.m. EST on trading volume that dropped 5% to $8.6 billion, as investors buy the dip.
Following this drop, the SOL price is now 50% down from it’s all time high of $294 that is set on Jan. 19, 2025.
Solana Price Shows Potential Reversal From Key Support Zone
The SOL price analysis shows that the token has experienced a significant decline from its recent peak of approximately $275, forming what appears to be an Elliott Wave pattern.
The 1-day chart illustrates a classic five-wave structure, where the current correction (wave 4) has approached a strong support zone between $140 and $150, according to GeckoTerminal data.
This support zone aligns with previous consolidation areas and key moving averages, making it a critical level for a potential reversal.
The downward movement has seen the Solana price action dip below both the 50-day Simple Moving Average (SMA) at $204.48 and the 200-day SMA at $184.17, signaling a bearish phase.
However, wave theory suggests that if this support holds, a new impulse wave (wave 5) could drive prices back toward previous highs.
Meanwhile, the Relative Strength Index (RSI) is at 27.21, which is deep in the oversold territory (below 30). This suggests that selling pressure may be exhausted, and a potential rebound could be imminent as buyers step in at support.
Historically, RSI levels below 30 often precede strong upward moves when combined with key support levels.
SOL Price Prediction
According to the SOL price analysis, the support zone around $140-$150 will be crucial in determining Solana’s next move.
If buyers defend this level, the Solana price could initiate a wave 5 rally targeting the $200-$250 range in the short term and potentially retesting $275 as major resistance.
However, if selling pressure persists and the price of SOL breaks below $140 with strong volume, the next downside target could be $120 or lower, invalidating the bullish wave count.
Meanwhile, investors are buying a new Solana meme coin called Solaxy (SOLX), which popular YouTube channel 99Bitcoins, with over 725K subscribers, says has the potential to soar 100X post-launch.
Solaxy Presale Closing On The $24 Million Mark
In times of high network activity, Solana lacks the computational resources to validate all transactions, leading to longer wait times and many transaction failures.
Solaxy brings a solution to all this, as it is building the world’s first Solana Layer 2 blockchain.
The project will address Solana’s network congestion issues by implementing off-chain transaction processing mechanisms—similar to Ethereum’s Layer 2 solutions. This model has already been proven successful within the Ethereum ecosystem through platforms like Arbitrum and Optimism.
🚨 Solaxy is now live in Upcoming Tokens! 🚨@SOLAXYTOKEN gives holders an opportunity to join the first-ever Solana Layer 2 blockchain.
Solaxy is set to enhance blockchain innovation through limiting congestion, reducing failed transactions, and improving scalability on SOL.… pic.twitter.com/satNF6zFNF
— Best Wallet (@BestWalletHQ) December 17, 2024
By processing transactions off of Solana’s main chain, bundling them together, and then submitting them back to the mainnet for final verification, Solaxy’s system enhances efficiency.
As a result, using Solaxy will be cheaper, faster, and more reliable than using Solana, giving a complete overhaul to the ecosystem’s transactional capabilities.
Such capabilities continue to attract investors, who have pumped over $23.5 million into the project.
Beyond speeds, Solaxy also offers an attractive staking opportunity for SOLX holders, with annual yields estimated at 172%.
Investors interested in participating in the presale can visit the official Solaxy website to buy SOLX tokens for $0.001646 each using BNB, ETH, USDT, or a bank card.
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