Solana (SOL) has experienced significant volatility recently, with a marked decline following its failure to breach the $150 mark. 

Over the last few days, Solana has struggled to break through certain resistance levels that have been affected by broader market trends. However, investor optimism appears to be driving recent price movements as SOL nears $120.

Solana Gains Support

One of the indicators showing promise for Solana’s recovery is its velocity, which measures the pace at which tokens are being circulated. The velocity has reached a monthly high, signaling that the transaction of supply is accelerating.

Amidst recovering price, there’s a noticeable increase in the velocity at which tokens are being transacted, highlighting greater demand. Velocity and price tend to move in tandem. Typically, when both price and velocity rise together, it’s considered a bullish signal — a trend currently seen with Solana.

However, despite the favorable signs from the velocity, Solana’s macro momentum remains relatively weak. The Relative Strength Index (RSI) is still stuck in the bearish zone, under the neutral 50.0 mark.

While the broader market has seen some rallies, Solana’s RSI indicates a lack of significant buying momentum. This suggests that while some positive movement is occurring, broader macroeconomic factors may still be playing a limiting role.

The persistent bearish sentiment reflected in the RSI implies that Solana’s recovery may face continued challenges. Despite occasional price bounces, the altcoin has not yet experienced enough momentum to break free from the bearish pressure.

SOL Price Attempts Recovery

Solana’s price has risen by 8.2% in the past 24 hours, trading at $114. While it is showing signs of recovery, the altcoin remains under the key psychological price of $120. Beyond it lies a crucial resistance of $123, which has proven challenging in recent days.

If the bullish momentum continues, Solana could rise past $120 and aim for $123. Securing it as support would likely lead to further gains, pushing Solana toward the $135 mark. Investor confidence and continued supply distribution could support this upward movement.

However, if Solana fails to breach the $123 resistance, the price may retreat toward $105 or even lower. A drop below $105 could signal a deeper decline, with the altcoin potentially heading toward the $100 mark. This would invalidate the recent bullish outlook, extending the correction phase for Solana.

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Onyxcoin has surged by nearly 30% in the past 24 hours, riding the wave of a broader crypto market rally. 

But beyond the market-wide momentum, on-chain data suggests that XCN’s spike, its strongest in over a month, is driven by genuine demand for the altcoin.

Onyxcoin Rallies, But There Is a Catch

XCN’s double-digit rally has been accompanied by a surge in its daily trading volume. This totals $128 million at press time, rocketing 480% over the past day.

When an asset’s price and trading volume spike simultaneously, it signals strong market interest and momentum. This means more participants are actively trading XCN and validating its price movement. 

Moreover, the daily count of active addresses that have traded XCN today has climbed to a 60-day high of 1,646. 

This spike in active addresses reflects growing retail and possibly institutional interest in XCN. More wallets transacting the token typically suggests broader network participation and confidence, which can serve as a strong bullish signal for the asset.

However, not all traders share this bullish sentiment. In the XCN futures market, the outlook is persistently bearish, as reflected by the token’s negative funding rate. This is at a two-month low of -0.18% at press time. 

The funding rate is a periodic fee exchanged between long and short traders in perpetual futures to keep the contract price in line with the spot price. 

When an asset’s funding rate is negative like this, short traders pay long traders. This indicates bearish sentiment and that more XCN traders are betting on the price to fall.

XCN Clears Key Barrier as Accumulation Grows — Is $0.015 Next?

Apart from the broader market recovery, the price rally is also supported by a visible uptick in on-chain user engagement, signaling that XCN traders are not just following hype but are actively accumulating.

On the daily chart, XCN has broken above the crucial $0.01 resistance level—a price point it struggled to break for two weeks. If the rally persists, XCN’s price could climb to $0.015, a high it last reached on March 5.

However, if market participants begin profit-taking, XCN could shed its recent gains and fall below the $0.011 support toward $0.0075.