- Summary:
- The Solana price has been stagnating around the $160 mark for the past few days. Could this be due to Tron or is there more to it?
Solana price is aiming for stability above the $160 mark for the third day in a row, with this level emerging as a potential support mark. Solana was trading at 161.70 at the time of writing on Monday, up +1.7 percent. The crypto coin has gained more than 11 percent over the past week, but a return to the $160 mark appears to have curbed momentum.
What drives the Solana price?
One of the main drivers of Solana’s price in recent days has been the prospect of approval of its ETF applications by the Securities and Exchange Commission (SEC). However, there has been a worrying silence on this front, leading to speculation that the SEC may have rejected the application.
Additionally, the attractiveness of the Solana blockchain ecosystem has come under pressure after Tron launched the launchpad for meme coin SunPump. SunPump recently surpassed Solana’s Pump.fun platform in terms of the number and value of meme coins launched. The meme coin mania has pushed SOLUSD higher this year, but Tron could spoil the party.
Therefore, Solana price will likely struggle to repeat the July momentum that pushed it above $190 as the hype around SunPump builds in the short term. Meanwhile, Tron has also outperformed Solana in the DeFi space, with its monthly gains of 2.6 percent versus Solana’s loss of 1 percent, according to DeFiLlama.
Momentum indicators, support and resistance levels.
On the 4-hour chart below, Solana price is trading above the volume weighted moving average (VWMA), currently at $154.99, suggesting bullish control. Support for the upside move is also shown by the RSI, which is at 68.
Meanwhile, the 30-minute chart also suggests a continuation of the uptrend if the price action stays above 160.40. In this case, we could see the first resistance at 162.00. However, if buyers extend their control, they could build the momentum to break above this level and test 164.70.
On the other hand, a drop below 160.40 will embolden sellers to take control and the downward momentum is likely to find initial support at 158.75. However, if they extend this control, sellers could fall below this level and possibly test lower support at 156.20. At this point, the bullish narrative will be invalidated.
