SOL is gaining strong momentum as Solana outperforms other Blockchains.

Solana (SOL) continues to assert its solid position on many fronts, maintaining a stable bullish structure in the Ichimoku Cloud chart and recording a significant recovery in momentum on key technical indicators. The BBTrend indicator has reversed in a positive direction, reflecting a clear signal of the return of the bridge after a short term adjustment.

In terms of on-chain activity, Solana remains the most vibrant focal point in the entire blockchain ecosystem, leading in trading volume on DEX platforms and generating outstanding fees due to the explosive wave of meme coins as well as strong activity from launchpad platforms. With SOL challenging an important resistance zone, a new bullish momentum is emerging — although temporary signs of weakening momentum may lead to a retest of the support zones below before the upward trend is solidified.

Solana maintains a bullish structure, but market momentum faces a critical challenge

On the Ichimoku Cloud chart, the price of Solana is currently still maintaining above the Kijun-sen (red base line ), while it has slid below the Tenkan-sen (blue conversion line ). This suggests that the short term bullish momentum is weakening, and the market may enter a phase of correction or accumulation.

The Ichimoku Cloud indicator on the SOL/USDT chart in the 4-hour timeframe | Source: TradingViewThe horizontal movement of the Tenkan-sen line, combined with recent price action, suggests that buying pressure is slowing down. However, as long as the price remains close to and holds above the Kijun-sen, the short-term support zone remains intact.

Overall, the Ichimoku structure still maintains a positive signal: a thick cloud that is trending upwards, with the Span A line above the Span B line – a typical pattern of a stable bullish trend, reflecting a very solid technical support base.

If Solana can bounce back from the Kijun-sen line and surpass the Tenkan-sen, the bullish trend is likely to be extended. Conversely, if it cannot maintain the recovery momentum, the price may test the upper edge of the cloud as the next support area.

Meanwhile, the BBTrend indicator of Solana is currently at 6, marking a nearly 10-day streak of maintaining in the positive zone since reaching a peak of 17.5 on April 14. The recent increase from 4.26 to 6 indicates that bullish momentum is showing signs of returning after a short term period of lull.

The BBTrend indicator on the SOL/USDT 4-hour chart | Source: TradingViewBBTrend, or Bollinger Band Trend, is a tool that measures the strength of a trend based on the expansion of the Bollinger Bands. The current positive value reflects an ongoing bullish trend. If this indicator continues to rise, it may signal that the bullish momentum is strengthening and there is a high possibility that Solana will enter a new growth cycle.

Solana dominates DEX trading volume and generates fees thanks to the meme coin explosion

Solana continues to assert its leading position as it once again surpasses all other blockchains in trading volume on decentralized exchanges (DEX), with an impressive figure reaching up to 15.15 billion USD in just seven days. Meanwhile, the total combined trading volume of major competitors like Ethereum, BNB Chain, Base, and Arbitrum only reaches about 22.7 billion USD.

DEX volume by chain | Source: DeFiLlamaIn just the last 24 hours, Solana recorded a trading volume of up to 1.67 billion USD – largely driven by the explosive wave of meme coins and the fierce competition between the two launchpad platforms, PumpFun and Raydium. Notably, this strong bullish momentum also helped Solana surpass Ethereum in terms of staking market capitalization.

Protocol and chain fees | Source: DeFiLlamaNot only that, Solana has also made a significant mark in generating revenue from transaction fees. In the top 10 highest fee-earning applications of the past week, there are as many as four representatives from the Solana ecosystem – including PumpFun, Jupiter, Jito, and Meteora.

Most impressive is PumpFun, as this platform alone has generated nearly 18 million USD in fees within just one week.

Solana breaks through a key resistance level, aiming for new highs but still carries risks

Solana has officially surpassed the important resistance level at $136 and turned it into a new support area, which was solidly verified during yesterday's trading session.

The exponential moving averages (EMA) continue to maintain a bullish trend, affirming the strength of the uptrend and indicating that the upward trend remains intact.

The SOL/USDT chart on the 4-hour timeframe | Source: TradingViewIf this bullish momentum continues, SOL price could approach the next resistance levels at $147 and $152. If it surpasses these levels, it is highly likely that the price of Solana will expand to the $179 range.

The current price structure is supporting the bulls, with a series of higher lows and solid support zones reinforcing the strong bullish trend.

However, if the bullish momentum weakens, the market could very well witness a retest of the support area at $136. If this price level is broken, market sentiment may shift, paving the way for Solana to decline further, targeting the next support area at $124, and possibly even $112.

Disclaimer*: This article is for informational purposes only and should not be considered investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions*

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