Solana Hits 400 Billion Transactions as SOL Faces Crucial Support Level

Solana (SOL) is at a pivotal moment, having recently surpassed $150 and achieved the significant milestone of 400 billion total transactions. Despite strong on-chain activity, momentum indicators such as RSI and shrinking EMA gaps suggest that the bullish trend is losing steam. SOL is now testing a key support level at $145.59, presenting both downside risks and potential upside opportunities.

Solana has reached a significant milestone, exceeding 400 billion total transactions. This achievement coincides with a surge in SOL's price, which recently broke above $150 for the first time since March before experiencing a slight pullback.

On-chain activity remains robust, with decentralized exchange (DEX) volume reaching $21 billion in the past seven days, a 44% increase, solidifying Solana’s top position in the market. From its low of $9.98 on January 1, 2023, SOL has seen an impressive rally of 1412%, making it one of the top performers of this cycle.

Solana's ecosystem has also grown significantly over the past year. The Pump protocol alone has generated over $75 million in fees in the past month, and prominent protocols like Raydium, Meteora, Jupiter, and Jito are consistently generating millions in monthly revenue.

Solana’s Relative Strength Index (RSI) has seen a sharp decline, dropping to 50.61 from a recent high of 70.52 just four days ago. This rapid fall mirrors the slowdown in SOL's price momentum after surpassing $150, suggesting that bullish momentum is starting to fade.

RSI is a key momentum indicator, and readings above 70 indicate overbought conditions, while readings below 30 signal oversold levels. A reading around 50 typically indicates a balanced market, with both buying and selling forces at play. As SOL’s RSI hovers near 50, the market faces a crucial crossroads.

If buying pressure resumes, the RSI may rise again, potentially pushing SOL higher. However, if the downward drift continues, it could confirm a weakening in momentum, leading to a possible price correction.

Despite the cooling momentum, Solana's exponential moving averages (EMAs) are still signaling a bullish setup, with short-term averages above long-term ones. However, the narrowing gap between them suggests a weakening trend.

SOL is currently testing a vital support level at $145.59. If this support breaks, the price could fall to $133.82, and further selling pressure might bring it down to $123.46. On the flip side, if buyers regain momentum, SOL could bounce back and challenge resistance around $157.

A breakout above this resistance zone would likely spark a rally toward $180, renewing the bullish trend.