After a brief pullback, the Solana (SOL) price is once again gathering steam looking to break past its crucial resistance of $140. At press time, SOL is trading 7% up at $138 with a market cap of $61.4 billion despite the Solana network facing congestion issues amid high trading activity.
Solana Network Congestion Issues
Recent data from DeFiLlama indicates a remarkable surge in Decentralized Exchange (DEX) trading volume on the Solana network from March 3 to March 6. For four consecutive days, trading volume has surpassed $2 billion, with a record-breaking $2.85 billion in trading volume recorded on March 5 alone, marking a new single-day high.
This surge in trading activity coincides with increased on-chain transactions, potentially contributing to the current congestion experienced on the Solana network. The heightened activity also underscores growing interest and engagement within the Solana ecosystem.
As a result of this, crypto exchange Binance also announced its decision to suspend Solana withdrawals temporarily on Wednesday, March 6.
SOL Price Action
Examining SOL’s price chart reveals a compelling narrative. The cryptocurrency has displayed a strong uptrend, characterized by consistent higher lows and higher highs, a bullish signal in market technical analysis. Furthermore, the alignment of moving averages indicates sustained buying interest, with shorter-term averages surpassing longer-term ones—a configuration typically associated with ongoing bullish sentiment.
Currently positioned around the $135 level, SOL encounters immediate resistance, the breach of which could spark a new rally. Conversely, support levels are identified near $115 and $104, historically acting as springboards for price rebounds. Importantly, recent upward price movements have been accompanied by significant trading volume, indicating active market participation and reinforcing a positive outlook.
As the broader market experiences a shift, the potential for Solana’s upward momentum becomes increasingly promising. Investors are turning to alternatives to Ethereum’s high gas fees and network congestion, and Solana’s scalability and cost-effectiveness make it an attractive option for both developers and investors alike. This favorable positioning could contribute to further price increases for Solana in the near future.
The post Solana (SOL) Price Bounces Back to $140 Despite Network Congestion Issues appeared first on CoinGape.
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