Solana is poised for a big rise above $80! Can Bulls Maintain SOL Prices Amid Growing Adoption?
The week began with a downturn in the market, but there has been a notable recovery from recent lows as Bitcoin strives to break above $43,000. Solana is taking advantage of this opportunity as it has made impressive gains in the past few hours. With the price now approaching the $80 level, Solana is preparing for a major move, according to on-chain details.
Increasing adoption of Solana Network
The price of SOL rose significantly from $68 to $76. This rise led to massive liquidations among investors, with over $4.5 million worth of short positions being liquidated, as reported by Coinglass. This means that many traders who had bet on SOL were caught off guard by the price surge.
Additionally, on-chain data shows that Solana is seeing increased adoption, which is having a positive impact on price. The growing popularity of meme coins like Bonk has brought more users to the SOL network. This influx of new users is having a positive impact on the value of SOL.
The SOL network has seen a significant increase in activity, reaching a 1.5-year high in terms of active addresses and new addresses. Specifically, the number of active addresses reached 861,000 and the number of new addresses reached 335,000. Additionally, the value of transactions conducted on-chain has increased significantly.
Since December 3, this metric has steadily increased, most recently reaching approximately $20.4 billion. However, this figure is still nothing compared to the peak in 2022, when transaction volume soared to $3 trillion.
There is currently a battle going on between bulls and bears as SOL faces resistance near its highs. The current long/short ratio is 1.0251, indicating a nearly balanced market sentiment. 51% of those in positions expect prices to rise, while 49% prefer to take short positions.
What’s next for SOL pricing?
Solana’s SOL declined as sellers resisted a surge above $76. However, the bulls are preparing another attempt to break the trend line, keeping the price in the bullish zone. At the time of writing, SOL price is trading at $73.4, up more than 3.1% from yesterday.
Since the rally began, the bulls have consistently prevented SOL price from closing below the 20-day EMA. Therefore, a violation below this level could activate the stop-loss orders of numerous traders, potentially leading to a decline towards the support line of the rising channel and towards the key psychological level of $50.
To avoid a deeper decline, bulls should strongly defend the 20-day EMA and push the price above the channel resistance of $80. Doing so could pave the way for a potential surge towards $100.