Solana Navigating towards $140 Despite Bearish Trends: What’s Next for SOL?
The recent volatility in the cryptocurrency market has caused a surge in the price of SOL, surpassing $140. This spike in price, however, may not be sustainable as on-chain metrics and network activity for SOL suggest potential bearish trends.
The increase in SOL’s value comes as Bitcoin’s dominance in the crypto market has declined, indicating a shift in investments from BTC to other leading altcoins. The Bitcoin Dominance Index experienced a significant daily drop of over 1.8% on June 25, the largest drop since January.
SOL Addresses Shows Decline
Data from Coinglass indicates that approximately $3.7 million worth of SOL was liquidated, with contributions from traders holding long positions as well as sellers. On-chain metrics for SOL over the past five days show a decline in active addresses and new addresses, suggesting reduced user activity and a weaker trading sentiment.
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Despite this, there is positive news as the total value locked (TVL) for Solana’s network has increased to $4.2 billion as of June 26, signaling growing trust and involvement of people and developers in the Solana ecosystem, thus contributing to the price increase.
Looking ahead, SOL has rebounded from $122 and re-entered its descending channel pattern. If bulls can sustain the price above the 100-day EMA at $141, this could lead to a rise towards the resistance line of $159, with potential consolidation in the range of $175-$192. Conversely, a reversal from the 100-day EMA level might see the price drop to the critical support at $122, and further down to $100 if this level is breached.
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Meet Daniel Abang: Crypto guru, content creator, and analyst. With a deep understanding of blockchain, he simplifies complex concepts, guiding audiences through the ever-changing crypto landscape. Trusted for his insightful analysis, Daniel is the go-to source for staying informed and empowered in the world of cryptocurrency.
