Solana (SOL) has recently received a lot of attention as its price has steadily rebounded from recent lows. This upward momentum follows Bitcoin’s surge towards the $40,000 level. However, amidst this optimistic sentiment, Solana’s on-chain metrics declined. This decline is reflected in a decrease in buying demand near resistance levels and a noticeable decrease in transaction fees resulting from a decrease in the number of active addresses.
SOL’s on-chain volume drops by billions of dollars
The market is currently witnessing a fierce struggle between buyers and sellers to establish a clear price trend for SOLs that fall within the current range boundary zone. This intense competition has resulted in significant liquidation events on both sides.
According to recent data from Coinglass, Solana had total liquidations approaching $5.2 million. Of this total, buyers had difficulty liquidating approximately $2.5 million of their positions, while sellers had difficulty liquidating positions worth approximately $2.7 million.
Recently, Solana has experienced a sharp decline in transaction fees, indicating a sharp downward trend. The data shows a significant drop in fees, plummeting from a high of $539,000 to $128,000. This drop in fees is closely related to the decline in daily active addresses on the Solana network, which has decreased by more than 26% in one month. This decrease indicates low levels of network activity. Additionally, Solana’s on-chain transaction volume fell by billions of dollars, falling from $47 billion to $30 billion.
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Solana’s recent decline in overall transaction fees signals a decline in user activity, which could increase seller trust. This increased confidence may lead to efforts to reverse the price near the resistance level in the coming hours.
What’s next for SOL pricing?
Recently, Solana has seen its value recover by crossing the 20-day EMA trend line, indicating strong interest from buyers. However, SOL is facing resistance as it attempts to move beyond the current scope of integration. SOL is currently trading at $86.5, up 0.2% from the previous day.
The 20-day exponential moving average (EMA) remains stable at around $87, while the relative strength index (RSI) hovers around 47, indicating a balance between supply and demand. Price rejection near the $90 resistance line indicates increasing selling pressure defending the breakout momentum above the resistance channel. If sellers are successful in defending this level, we could see a decline towards the support at $79 within the channel.
On the other hand, if the price breaks above the resistance level, it could indicate that buyers are taking advantage of the downtrend. In this scenario, a break above the important $116 resistance is likely. However, to sustain the upward trend, buyers will need to keep the price above $125.