On February 6th, the crypto market experienced a surge in selling pressure, with Bitcoin price plunging below $100k. This renewed bearish momentum extends the correction trend in most altcoins influenced SOL. While the falling Solana price hints major breakdown from a reversal pattern, the increasing application revues could bolster buyers to present a major downfall.
Key Highlights:
- A double-top reversal pattern daily sets the Solana price for a correction below $100.
- Cumulative app revenues on Solana skyrocketed from $268 million in Q3 to $840 million in Q4.
- The $280-$175 regions supported by a long-coming support trendline and 200-day Exponential moving average create a high accumulation point.
Solana’s Cumulative App Revenues Skyrocket to $840M in Q4 2024
In a recent tweet, SatoshiClub highlights significant growth in Solana’s cumulative app revenues, skyrocketing from $268 million in Q3 2024 to a staggering $840 million in Q4—a remarkable 213% quarter-over-quarter (QoQ) growth.
This growth in application revenue directly reflects increased user adoption and transaction volume across multiple sectors.
The memecoin generator app, Pump.fun, is the highest contributor with $235 million in revenue— a 242% QoQ increase. Close behind is Photon, generating $140 million with a 278% QoQ increase, signaling growing traction in the DeFi and NFT sectors.
The decentralized exchange (DEX) Raydium recorded $74 million (268% QoQ increase). Moreover, platforms like Bullx recorded $74 million (268% QoQ increase), and TrojanOnSolana projected $63 million (187% QoQ increase).
Solana Price Faces Risk of $100 Breakout
In the past four weeks, the Solana price has experienced a sharp V-top from $295 to $195, accounting for a 34% decrease. This marks a second pullback from $264 resistance since late November 2024, projecting a high supply pressure from above.
With this overhead supply, the SOL price daily chart revealed the formation of a double bottom pattern. This chart setup resembles the letter ‘M’ and is often spotted at major tops before a major breakdown.
Currently trading at $192, the altcoin is 8% away from a bearish breakdown of $177 neckline support. If successful, the SOL sellers would strengthen their grip over this asset and drive a correction below $100.
SOL/USDT -1d Chart
On the contrary, if buyers manage to defend $264 support, the Solana price trajectory could shift sideways to recuperate the bullish momentum.
