Solana (SOL) Price Bounces Back to $140 Despite Network Congestion Issues

Following a temporary setback, the Solana (SOL) price is resuming its upward momentum, aiming to surpass the critical resistance level of $140. Currently, SOL is trading 7% higher at $138, boasting a market capitalization of $61.4 billion. Notably, despite congestion challenges on the Solana network due to increased trading activity, SOL remains resilient in its ascent

Solana Network Congestion Issues

Recent data from DeFiLlama indicates a remarkable surge in Decentralized Exchange (DEX) trading volume on the Solana network from March 3 to March 6. For four consecutive days, trading volume has surpassed $2 billion, with a record-breaking $2.85 billion in trading volume recorded on March 5 alone, marking a new single-day high.

This surge in trading activity coincides with increased on-chain transactions, potentially contributing to the current congestion experienced on the Solana network. The heightened activity also underscores growing interest and engagement within the Solana ecosystem.

As a result of this, crypto exchange Binance also announced its decision to suspend Solana withdrawals temporarily on Wednesday, March 6.

SOL Price Action

Examining SOL’s price chart reveals a compelling narrative. The cryptocurrency has displayed a strong uptrend, characterized by consistent higher lows and higher highs, a bullish signal in market technical analysis. Furthermore, the alignment of moving averages indicates sustained buying interest, with shorter-term averages surpassing longer-term ones—a configuration typically associated with ongoing bullish sentiment.

Currently positioned around the $135 level, SOL encounters immediate resistance, the breach of which could spark a new rally. Conversely, support levels are identified near $115 and $104, historically acting as springboards for price rebounds. Importantly, recent upward price movements have been accompanied by significant trading volume, indicating active market participation and reinforcing a positive outlook.

As the broader market experiences a shift, the potential for Solana’s upward momentum becomes increasingly promising. Investors are turning to alternatives to Ethereum’s high gas fees and network congestion, and Solana’s scalability and cost-effectiveness make it an attractive option for both developers and investors alike. This favorable positioning could contribute to further price increases for Solana in the near future.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.