Solana price pulled back for the second consecutive day after the CLARITY Act stalled in the Senate. It retreated from the weekly high of $146.75 to the current $142. Still, a closer look beneath the surface shows that SOL has the fundamentals and technicals necessary for a rebound.
Solana Has Strong Fundamentals
Third-party data shows that Solana’s network is doing well, which may help to support its recovery. For example, data shows that Solana has become a major player in the real-world asset (RWA) tokenization industry. RWA assets in the network jumped to over $1 billion, up from zero in the same period last year.
Solana is also the most actively used chain in the crypto industry, with the number of its active users soaring to over 60 million in the last 30 days. This number is much higher than other networks, including popular names like Ethereum and Base.
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Solana is generating some of the highest fees in the crypto industry today. It made over $17 million in fees in the last 30 days as activity in the network soared
Meanwhile, Solana has overtaken Ethereum and BSC chains in terms of DEX volume. The network handled over $100 billion in the last 30 days, which the other two chains handled $42 billion and $45 billion combined.
These metrics will likely improve in the coming months when the network launches the Alpenglow upgrade. Alpenglow will dramatically change its architecture and increase its throughput by introducing the Votor and Rotor technologies. It will be launched later this quarter.
Meanwhile, data shows that American investors continue to accumulate Solana ETFs, a sign that they expect the price to keep rising in the near term. These investors have added close to $1 billion in assets this year, and the cumulative inflows is nearing the $1 billion mark.
Solana Price Technical Analysis
The 12-hour chart shows that Solana has highly bullish technicals that will boost its performance in the near term. It jumped from a low of $117 in December to a high of $146.
The year-to-date high coincided with the 23.6 % Fibonacci Retracement level, which explains why it has pulled back. SOL has also formed a cup-and-handle pattern, which is a common bullish continuation sign.
Therefore, the most likely scenario is where it continues rising as bulls target the 50% Fibonacci Retracement level at $185, which is about 30% above the current level.
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