Solana price is gaining massive buying demand, overcoming the month-long price range’s imbalance. Throughout May, Solana has emerged as one of the top performers in the market, surpassing even Ethereum with its gains. This month, Solana’s price has soared by more than 50%. The recent surge in Solana’s value triggered a rise in on-chain metrics, creating mixed signals among analysts.
Solana’s Trading Volume Jumps Over 50%
In the past 24 hours, Solana’s price saw a significant surge in buying interest, pushing it above key resistance levels. This momentum triggered a wave of short liquidations. According to data from Coinglass, total liquidations exceeded $7.4 million. Of these, bearish trades amounting to $5.7 million were liquidated.
According to IntoTheBlock data, Solana has witnessed a surge in the number of new addresses, climbing from 807,000 to 810,000. This increase in new addresses indicates a growing market interest in investing in Solana, resulting in a strengthening bullish sentiment.
Furthermore, the count of active Solana addresses has increased significantly over the past five days, with data showing a rise from 1.15 million to 1.17 million. This growth has been accompanied by a 53% increase in trading volume in the last 24 hours.
Read more: Solana (SOL) Enters the Crucial Phase: Will the Bulls Make It to $200?
There are signs that whale investors may continue their purchasing activity, potentially driving further price increases for Solana before any potential pullback. Both Solana and the crypto market are experiencing upward trends, particularly in light of the recent CPI report from last week.
Data from IntoTheBlock shows that the value transferred on-chain is on the rise. This metric has rebounded from a low of $93 billion to $130 billion today, reflecting continuous buying interest.
The long/short ratio has surged to 1.2277, suggesting an increase in bullish dominance with 55% of positions now predicting a push in Solana’s price.
What’s Next For SOL Price?
Solana has surged above its 20-day Exponential Moving Average (EMA) at $172 on the 4-hour chart, a point likely to serve as a significant support level. In recent hours, buyers have aggressively accumulated positions, pushing past immediate Fibonacci levels. Currently, the SOL price stands at $180.3, having climbed over 6% in the last 24 hours.
Should the price move beyond the moving averages and hold above the resistance line, it would indicate a resurgence of bullish momentum. Under this scenario, the SOL/USDT pair could target a rally towards the next major resistance at $192.
Conversely, a retreat from the moving averages would suggest a growing bearish sentiment, with traders taking advantage of price spikes to sell. This could cause the price to descend towards a strong support level at $159. A break below this point may prompt a further drop to $137.
With the Relative Strength Index (RSI) heading toward the overbought region, SOL’s price might maintain its upward momentum, potentially aiming for a surge above $210.
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