Plunge

Solana

Bitcoin

<p>The post <a href="https://coinpedia.org/price-analysis/solanas-on-chain-metrics-decline-amid-rising-bearish-threats-will-the-sol-price-plunge-further/" rel="noopener noreferrer nofollow">Solana’s On-Chain Metrics Decline Amid Rising Bearish Threats! Will The SOL Price Plunge Further?&nbsp;</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p><p>Following Bitcoin’s drop toward the $60K level, the market experienced a slowdown, leading to a decrease in dominance among various altcoins. Last week, the market went on a correction due to a pivot from robust inflows into Bitcoin exchange-traded funds (ETFs) towards outflows. This change in direction contributed to Bitcoin’s decline, dragging altcoins down to their support levels in the process. Additionally, after SOL’s price lost the $200 mark, there was a noticeable drop in important on-chain metrics, raising concerns among long-term investors.</p><h2 class="wp-block-heading" id="h-these-indicators-suggest-a-bearish-outlook">These Indicators Suggest A Bearish Outlook</h2><p>In recent hours, the cryptocurrency market has entered a phase of recovery, with the price of Bitcoin climbing past $68K, which has helped to revive numerous altcoins. Over the last day, the market witnessed total liquidations surpassing $180 million, with sellers liquidating more than $114 million in positions. Notably, Solana saw a substantial short squeeze, resulting in almost $9 million in short positions being liquidated.</p><figure class="wp-block-image"><img src="https://lh7-us.googleusercontent.com/_8CXKA1w4MtY8oE2ISHp-75TL415s0TuJGFefIZf4t9SMUtUHBPF4bra4uh-SEERXw24CXEGIhAmIG8SSJavxcQyT3kjSeOgNBL_QQyI8am_KjxR-LJeBGQ1g4FT96x1_Z9nSymTH5-cye7Yxk_32Rc" alt=""></figure><p>Despite its recent positive momentum, <a href="https://coinpedia.org/price-analysis/solana-records-increased-bullish-sentiments-sol-price-to-surge-back-above-200/" rel="noopener noreferrer nofollow">Solana faces</a> potential challenges that could halt its progress, with bearish trends becoming apparent through on-chain data. Recent data indicates a significant decrease in demand for Solana as active addresses from 1.61 million to 1.33 million, pointing to a decline in user interaction. Furthermore, there has been a drop in the creation of new addresses on the Solana network, decreasing from 1.25 million to 1.01 million.&nbsp;</p><figure class="wp-block-image"><img src="https://lh7-us.googleusercontent.com/YTZzED_DEJMYVd5V2F72pVcri_XgJTIR6c8soVW7gpUm6iXkLa4xqqVT_eiBWITQ8gCjFjLiH9C6hEVavgZoYt53MegJl65E_Ua75FgAktp3sFX85iIWGPVwPExgYw-L7cZ1_vl-avvp3CjIFWzP_X4" alt=""></figure><p>Additionally, a significant decrease in transaction fees for Solana has been observed, dropping from $4.83 million to just $2.07 million. This decline in fees might plunge investor interest, potentially increasing sellers’ dominance on the SOL price chart.</p><p>Since September 2023, Solana’s value has experienced a meteoric rise of over 1000%. This remarkable growth is mainly due to two key elements: the bullish trend of Bitcoin, with its price reaching $75K, and the substantial buying of SOL after FTX’s collapse. Just last month, Solana saw an impressive surge of 90%, recording the biggest increase of 2024.</p><h2 class="wp-block-heading" id="h-what-s-next-for-sol-price">What’s Next For SOL Price?</h2><p>Currently, the market trends are favoring buyers, with investors aiming to surge above the $200 mark in the next few hours. However, sellers are vigorously defending against an upward price movement beyond the key Fibonacci retracement levels, leading to a notable increase in the volatility of the SOL price.&nbsp;&nbsp;</p><figure class="wp-block-image"><img src="https://lh7-us.googleusercontent.com/2UgF_ojOxqvkmX0qaGfAtcV8pW2BQo0rlpk_1ypEm7kcEoIP3iGpQxOlhRxDiCHV_uU4y79WA-vgsn4dPJL0dQNRHBoRpl7KM84xX4AT5-mMwoEbJ5SDEElrag9jON30fBjht5PWru-OchM1hqQOwIk" alt=""></figure><p>Should attempts to break above the $200 resistance level falter, the main line of support is expected to be the ascending trend line at $170. Breaching this support could lead SOL’s price to fall to a crucial level of support at $155 as seen on the 4-hour chart. A strong bounce back from the trend line might send the price towards the 20-day Exponential Moving Average (EMA). Clearing this barrier could establish a trading range of $190 to $210.</p><p>For the bulls to retain control over the market, it is essential to not only reach but also to maintain the price above the $200 mark.&nbsp;</p>

Solana’s On-Chain Metrics Decline Amid Rising Bearish Threats! Will The SOL Price Plunge Further?

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