Solana’s trading fees hit monthly low amid low buying demand: The next SOL price levels are as follows:
Solana’s price has recently experienced a loss of momentum due to multiple rejections by Bitcoin and declining whale investor interest in altcoins. As a result, the price of SOL struggled to break through resistance levels and a decline in on-chain indicators became evident. This includes a noticeable reduction in transaction fees and a decrease in the number of active addresses due to lower purchasing demand.
Significant reduction in Solana total fees
Both bullish and bearish traders have been actively liquidating assets, with Solana experiencing liquidations totaling $6.4 million in the past 24 hours. During these liquidations, bullish traders sold approximately $2.3 million worth of positions, while sellers liquidated short positions totaling $4.1 million.
Recently, Solana’s transaction fees have dropped noticeably, showing a steady decline since December 27th. The data shows a significant decline in fees, from a high of $763,000 to a low of $122,000. This decline in fees is closely related to the decline in daily active addresses on the Solana network, which has decreased by more than 52% in a week. This decrease indicates a reduced level of network activity.
Solana has gained a reputation for its relatively low transaction fees compared to Ethereum, but these rising fees indicate an increased level of activity on the Solana network. This upward trend means that the network is currently experiencing a surge in usage and transaction volume.
Solana’s recent overall fee reduction means less user activity, potentially increasing trust among merchants. This new confidence could lead to an attempt to push the price below the support level in the coming hours.
What’s next for SOL pricing?
Recently, Solana’s value has been showing signs of recovery, rising from the moving average, indicating strong interest from buyers. Nonetheless, SOL faces resistance as it seeks to move beyond its current scope of integration. The current SOL price is $99.1, showing a 2% increase compared to the previous day.
The 20-day exponential moving average (EMA) is holding steady at around $97, and the relative strength index (RSI) is balanced near 53, suggesting a balance between supply and demand. The price rejection near the resistance level of $103 suggests increasing selling pressure near higher levels. If sellers continue to defend this level, we could see a decline towards the channel’s support level of $90.
Conversely, if the price rises above resistance, it may mean that buyers are taking advantage of the downtrend. In this scenario, the price could break the important resistance level of $125. However, a sustained upward trend requires buyers to hold the price above this resistance level.