Experienced investors know that the gloomy days of bear markets are often the best times to buy, and they have capitalized on this. Those familiar with previous cycles are aware that pullbacks during an uptrend can also create short-term buying opportunities. This signal may have arrived for SOL Coin.
Solana (SOL)
At the time of writing, the popular Ethereum competitor SOL Coin was trading at $179. It was in a better position 24 hours earlier, but fluctuations in BTC price also slightly affected it. The recent major drop breached the key $165 support, fueling investor concerns about the continuation of the uptrend. However, it is important to note that the support was reclaimed at the time of writing.
Moreover, network activity has significantly increased. We recently mentioned that daily active users are approaching one million. The downside for SOL Coin, however, is the increased network activity leading to failed transactions. On March 16, validators experienced delays of up to 40 seconds, and nearly half of the transactions failed within a 20-minute period.
Should You Buy Solana?
There have been significant losses in Solana meme coins following the March 14th Dencun upgrade, whether related or not. Dogwifhat (WIF) and Bonk (BONK) experienced drops of 38% and 40%, respectively. There are two major indicators for the continuation of Solana’s price rise.
The first is the $165 key support, which could be a good opportunity if the right stop point is set. However, closures below support could lead to further drops to $138 or even lower. On the other hand, a resurgence in demand for Solana meme coins could trigger a similar demand for SOL Coin as seen in recent days.
We have already discussed how important the strong stance in network activity is. This is also an important detail for the future of SOL Coin. Yesterday at this time, we extensively discussed why people in the middle and lower income groups cannot afford to throw away 25 cents as a transaction fee.
