Over the past few weeks, Solana (SOL) has gained significant attention as its price continues to consolidate around crucial support lines. This consolidation follows Bitcoin’s latest struggle to validate a clear trend above the psychological mark of $70K. Amid the overall stable market sentiment, Solana has seen a mood swing in key on-chain metrics, creating possibilities of a significant move in the coming hours.
Solana Sees A Surge In New Addresses
The market is presently witnessing a tug-of-war between buyers and sellers attempting to establish a clear price trend for Solana (SOL), which is currently trading around a consolidated range of $160. As sellers gain the upper hand, significant liquidations are on the rise.
Also read: Solana All Set For Major Mainnet Upgrade To Tackle Congestion Issues
Recent data from Coinglass shows that Solana has experienced total liquidations nearing $2.7 million. Of this amount, buyers have faced liquidations of approximately $2 million, while sellers have encountered liquidations totaling around $680K.
According to data from IntoTheBlock, Solana has witnessed a notable increase in the number of new addresses over the last seven days. The figures show a significant rise, climbing from 956,000 to a new high of 980,000. Though the metric touched 1 million addresses recently, it dropped from that peak due to low buying confidence. However, this surge in new addresses indicates growing interest and investment in Solana, contributing to a bullish market sentiment.
There are signs that whales might start accumulating, potentially driving Solana’s price higher before a strong rally is confirmed. It’s expected that both Solana and the market will surge, especially given the positive outlook following last week’s consolidation.
According to data from IntoTheBlock, the value transferred on-chain has been declining. Over the last seven days, the metric has been dropping from $159 billion to $136 billion, suggesting a drop in SOL investment. This might provide a strong resistance to any buying pressure.
What’s Next For SOL Price?
Solana has reached its 20-day Exponential Moving Average (EMA) at $162 on the 4-hour chart, which is likely to serve as a significant resistance point. Buyers have been accumulating aggressively in recent hours; however, sellers are strongly defending a surge. This has resulted in a consolidation in the price chart. As of now, SOL is trading at $162, up over 0.2% in the last 24 hours.
If the price advances past the moving averages and $162, it signals a potential resurgence by the bulls. In this scenario, the SOL/USDT pair may target a rally towards the next major resistance at the descending resistance line. If the price surpasses that level, we might see a climb toward $192.
Conversely, if the price declines from the moving averages, it suggests increasing negative sentiment with traders selling during price rallies. This could drive the price down towards the solid support zone of $130-$140. A break below this threshold could result in a further decline to $100.
Credit: Source link