Can Solana Bounce Back After Hitting a Two-Week Low?

• Solana drops to $137, with potential for significant breakout.
• TVL in Solana’s DeFi ecosystem increases by 42% in August.

Solana’s recent resurgence was short-lived as the cryptocurrency succumbed to bearish pressure, dropping to a two-week low of $137 today. Over the past 24 hours, SOL has declined by nearly 4%, with trading volume plummeting by 19%. The token has also experienced a 24% decrease over the past month.

Despite the recent downturn, analysts believe that the fluctuating price range of Solana in recent days might be setting the stage for a major breakout. Meanwhile, the daily Relative Strength Index (RSI) is currently at 47, suggesting that SOL is approaching oversold territory.

If Solana manages to break out of its current range, analysts predict a potential rise to the $400-$500 range, with possibilities extending towards $800-$1,000 or even higher. This optimistic outlook contrasts with the current bearish trend, where the 9-day Exponential Moving Average (EMA) is at $146, and the daily RSI stands at 41, indicating that SOL is nearing an oversold condition.

Meanwhile, the Total Value Locked (TVL) in Solana’s DeFi ecosystem experienced significant growth in August. According to DefiLlama, TVL surged from $3.82 billion to $5.4 billion within three weeks, marking a 42% increase. This rise reflects growing confidence and participation in Solana’s decentralized finance sector.

SOL Short-term Analysis

Currently, Solana’s price is under bearish pressure, with resistance expected around $156. If the bulls regain control, they may push the price toward the $180 range. Conversely, if bearish momentum continues, SOL could potentially fall to $129 and further to $116.

The cryptocurrency community remains vigilant, monitoring recent buying activity by large holders to determine whether it will stabilize the market or if further declines are likely. As Solana navigates this volatile phase, short-term predictions remain uncertain.

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