Solana’s activity and increased on-chain transactions indicate growing interest from traders, with SOL price poised to break above $140.

After a brief pullback, Solana (SOL) price is once again gathering momentum and could break above the key resistance at $140. At press time, SOL was trading 7% higher at $138, with a market capitalization of $61.4 billion, even as the Solana network faced congestion issues amid high trading activity.

Solana network congestion problem

The latest data from DeFiLlama shows that from March 3 to March 6, the trading volume of the decentralized exchange (DEX) on the Solana network surged significantly, with trading volume exceeding US$2 billion for four consecutive days, and the transaction volume hitting a record high of US$2.85 billion. On March 5 alone, it hit a new single-day high.

The surge in trading activity, coinciding with an increase in on-chain transactions, may be contributing to the current congestion on the Solana network. The increase in activity also highlights the growing interest and engagement in the Solana ecosystem.

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

SOL price action

Examining SOL's price chart reveals a compelling narrative. The cryptocurrency is showing a strong uptrend characterized by consistently higher lows and higher highs, which is a bullish sign in market technical analysis. Additionally, the alignment of the moving averages indicates continued buying interest, with the short-term average exceeding the longer-term average—a configuration typically associated with sustained bullish sentiment.

Currently sitting around $135, SOL encounters immediate resistance, a break above which could trigger a fresh rally. Instead, support is found near $115 and $104, which have historically served as springboards for price rallies. Importantly, the recent price gains have been accompanied by strong trading volumes, indicating active market participation and reinforcing the positive outlook.

As the broader market experiences a shift, Solana's upside momentum potential is becoming 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 developers and investors alike. This favorable positioning could drive Solana's price higher in the near future.#热门话题 #BTC #SOL

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