Solana will fall towards $100 as active addresses plummet 30%! The next SOL price levels are:
Solana’s value is witnessing declining investor interest due to a decline in key resistance levels. This caused sentiment to plummet as prices remained near the $100 level. The drop in value follows Bitcoin’s rejection near its $53,000 peak, triggering a series of prolonged liquidations across the market. As a result, the current bearish sentiment is supported by on-chain indicators. This indicates that a decline below Solana’s immediate support line is approaching, and the signal is pointing towards a bearish pattern.
Solana’s active addresses show rapid decline
In the last 24 hours, the cryptocurrency market saw total liquidations exceed $300 million, with buyers offloading more than $220 million worth of positions. In particular, Solana witnessed the liquidation of over $10 million in long positions. This triggered immediate selling pressure on the SOL price and caused it to plummet to around the $100 support level.
The recent decline in Solana’s price was caused by investor anxiety over a market correction when the stock was near its all-time highs. This decline occurred as Bitcoin and Ethereum failed to maintain their positions around $53,000 and $3,000, respectively.
According to on-chain data, Solana’s active addresses have decreased from a peak of 1.02 million to 691,000, representing a nearly 30% decline in recent weeks. This decline in active addresses signals a decline in confidence in Solana, potentially causing whale investor confidence and SOL price volatility to plummet.
However, value transferred on the Solana network has recovered, rising from a low of approximately $218 billion to again exceed $1 trillion. This recovery of transferred value shows positive buying sentiment for SOL and is likely to stabilize the price from further declines.
What’s next for SOL pricing?
Bears currently have the upper hand on the price chart and sellers are aiming to keep the price below the critical support level over the next few hours. However, buyers are putting up a strong fight to prevent a decline below the immediate Fibonacci level. At the time of writing this article, the price of SOL was $102, down more than 6.2% from the previous day’s price.
If the price fails to move above the $103 support, the next support is found around $93. If this level is damaged, the price of SOL may fall towards the critical support level of $80. A strong recovery from $80 could push the price towards the 20-day exponential moving average (EMA). A move above this level could cause the price to consolidate between $108 and $80.
If the bulls want to maintain their dominance, they will need to keep the price above $100. Achieving this could set the stage for targeting the subsequent significant resistance level at EMA20 and then the $116 mark.
Recently, Solana’s long/short ratio has decreased and is currently at 0.7562, with 57% of total positions expecting the price to fall.