According to statistics released by crypto analytics platform Token Terminal, Solana (SOL), the cryptocurrency that drives Solana‘s high-performance smart-contract-enabled blockchain, had an incredible $830 million in trade volumes on February 16th. This was the second-highest day trade volume in two weeks, with just February 15th topping it with $850 million.
Solana has whipsawed both sides of its 21-Day Moving Average (DMA) around $23.0, resulting in an increase in trading volumes. On Friday, the cryptocurrency was last trading at about $22.80 per token, up around 2.5% on the day but down about 5% from Thursday’s weekly highs above $24. Solana has not been able to equal the exploits of its big competitors Bitcoin and Ethereum this week.
Bitcoin, Ethereum and Solana are Making Significant Runs
Bitcoin reached significant eight-month highs in the $25,000s on Thursday, while Ethereum reached its best levels since last September in the $1,700s. Both have now lowered their highs. Meanwhile, Solana has failed to challenge its recent highs in the $26.00 range after failing to break firmly above its 21DMA and facing selling pressure ahead of its 200DMA, which is presently at $25.24.
Solana‘s 200DMA, which has been a crucial region of resistance in recent weeks, isn’t the only thing standing in the way of a higher price. The $26.00-$2700 range is a crucial point of long-term support-turned-resistance, and if Solana can break over it, it will meet severe opposition from a downtrend that has been in place since early 2022.
It Seems Like the Cryptocurrency Market will Recover Soon
Despite mounting economic headwinds, such as comments from Fed members this week about a likely return to 50 basis point rate rises, the larger cryptocurrency market is recovering. If Solana maintains its resilience, it may be able to continue to rise. While the cryptocurrency has already recovered 180% from its late-2022 lows of roughly $8.0 per token, it is still more than 90% behind its 2021 highs.
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