What’s Next for SOL Price?
Sales pressure has increased, and today, Solana has been performing poorly. The recent $1.5 billion hacking attack in Bybit Exchange has enhanced resistance levels. Lower network activity also triggered the recent price drop. There are now several on-chain indicators that have fallen, suggesting that SOL prices may be preparing for the pain of breaking resistance levels.
Solana’s address number drops sharply
Solana’s price has been under pressure due to the aftermath of the Libra meme coin scam and it faces further challenges after stealing $1.5 billion from the Bybit Exchange. According to Coinglass, Solana’s total liquidation rate reached $17 million, with buyers and sellers liquidating about $14.3 million and $2.7 million worth of positions respectively.
Despite these challenges, the price of Sol has gained positive momentum due to excitement about exchange-traded funds (ETFs). Recently, Franklin Templeton took an important step to apply for a new ETF that aims to track spot prices in Solana, which indicates an increase in interest in SOL.
Despite positive developments, Solana’s chain chain indicators have been deteriorating. According to the data from this block, the number of transactions on the SOL network fell from 291 million to 273 million. In addition, the number of active addresses dropped significantly, from a peak of 5.7 million to only 3.49 million.
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The downward trend of key on-chain indicators suggests bearish control over Solana. As network activity weakens, the volatility of starting upward gatherings decreases.
Additionally, with the increase in short positions, SOL prices may initiate further bearish rally. Data from coinglass show that the length/short ratio drops to 0.8993. This indicates the current 53% total transaction abbreviation.
What’s next for Sol Price?
The crypto market is recovering, thus making a strong correction to the Sol price after Bybit Hack. Buyers are now pushing prices above the instant FIB level to continue their upward momentum. As of this writing, Sol Price is trading at $173, up 2.8% over the past 24 hours.
The SOL/USDT trading pair continues to struggle below $180, indicating strong dominance of the Bears. This price level may be a major obstacle as STH may continue to liquidate here. However, if demand surges, buyers may soon exceed that level.
If the price is below the EMA20 trendline of the 1-hour chart, the seller may try to reduce it to the $160 support level.
However, as the RSI level continues to trade at the mid-line level 48, it may trigger a retest of the resistance channel. If the price manages to hold more than $180, it will benefit the buyer. The pair may then increase to $220.
