January 30th’s Surprise Rise: Amidst a market downturn following comments by Federal Reserve Chief Jerome Powell, Solana (SOL) experienced an impressive price jump reaching a 30-day high of $107. This surge contrasted with the broader crypto market’s decline, which saw over $40 billion in capitalization lost in a single day.

Market Movements: A Closer Look

Solana’s current price stands at $98, down from its recent peak, yet the trading volume trends and holder behavior indicate a potential early rebound. Despite a general pullback, the majority of SOL holders seem to exhibit a bullish sentiment, possibly forecasting an upcoming price rally.

Trading Volume vs. Price: What Does It Tell Us?

An analysis of Solana’s trading volume reveals a significant decrease from $3.8 billion to $1.4 billion within a week, suggesting a 56% drop in trading activity. However, the price has only seen an 8% decline. This pattern often indicates strong holder conviction, hinting at a price consolidation phase rather than a selloff.

Solana Network: Record-Breaking Usage

The Solana network has seen its usage soar to unprecedented levels, with over 875,000 active users reported on January 31st. This marks the highest activity since its inception, surpassing the previous 2023 peak by more than 26%. The sustained high average of active users indicates organic growth and increased adoption of the Solana ecosystem.

Price Forecast: Is $120 Within Reach?

The combination of network growth and reduced selling pressure positions Solana for a potential uptrend towards the $120 mark. Technical indicators like the Parabolic SAR suggest a bullish reversal, with current trends supporting this positive outlook. However, any bearish pressure could challenge this forecast, with a critical support level at $87 to watch.