Solana (SOL) Weekly Review: Key Support Holds, But Volume Drops Raise Caution Flags
- Solana price stabilizes above critical $162 support amid lower volatility.
- Alpenglow upgrade slashes transaction finality from 12 seconds to 150 milliseconds.
- Analysts predict moderate price fluctuations for Solana through 2025, with potential slight ROI.
Solana (SOL), which is one of the leading Layer 1 blockchain platforms, is trading at $166.61, up just 1.30% from where it stood earlier. The trading volumes, though, have declined considerably by as much as 30% in the last 24 hours to $3.8 billion. During the previous week, it lost 4.80% to trade at $166.62.
Solana is experiencing a sound consolidation process within an established trading channel. All support at $162 is strongly supported by bullish momentum, as much as there is muted underlying volume and prevailing market indecision.
The Relative Strength Index (RSI) stands at a neutral 66.54, showing scope for further upside before becoming overbought. The MACD indicator, on the other hand, suggests an imminent change in momentum, indicating that traders can keep an eye on developing trends.
The technical arrangement shows bullish inclination as price remains above the 20-day exponential moving average (EMA). There is decreased volatility exhibited by Bollinger Bands width at 10.16% as well as DMI values in favor of buyers, who retain command while consolidating.
Alpenglow boosts Solana protocol efficiency
A revolutionary upgrade, known as Alpenglow, has dramatically improved Solanas protocol efficiency. In contrast to conventional Layer 2 solutions or sidechains, Alpenglow redefines transaction processing at its fundamental level, cutting transaction finality from 12 seconds down to an incredible 150 milliseconds. This game-changing pace brings Solana nearer to real-time internet infrastructure, ushering in an incredibly smoother user experience.
Formerly dependent on Proof of History for ordering transactions, Solana was plagued by latency issues affecting apps that require instant confirmation, like decentralized games or buying an NFT. The Alpenglow update substitutes that process with an even faster consensus mechanism baked into the chain, allowing transactions to settle quicker than Web2 heavy hitters like Visa or PayPal.
This update propels Solanas potential for interactive decentralized apps, such as real-time auctions and high-frequency trading, while keeping its decentralization and security aspects intact. Solana stands alone as the one Layer 1 blockchain capable of supporting real-world, high-frequency use cases directly, without needing auxiliary scaling solutions.
Solana 2025 Price Range Forecast
In the future, technical predictions indicate Solanas price will oscillate within a range. In 2025, forecasts suggest that the minimum price can go as low as $137.63 or as high as $152.74, with an average price of $167.85. This means an estimated negative return on investment (ROI) of about -7.6%.
For May 2025, Solanas average price prediction is about $161.18, ranging from $154.82 to near $167.54, which shows a relatively positive ROI of about 1.4%. A cautious strategy is recommended to traders, balancing risk and rewards posed by tight consolidation areas, declining volumes, and moderate liquidity levels.
Active traders may be looking to consider buying entry points at $162 to $165, where targets as high as $180 can be taken, and even tighter stops below $159 to limit downward risk. In case of failure of that important $162 support, shorting could target $141, but tight stops will be necessary.
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Read more: https://www.tronweekly.com/solana-sol-weekly-review-key-support-holds-but/
Text source: TronWeekly
