Bitcoin

The Solana network is having trouble keeping up with on-chain activity as trading interest declines. Following a recent market crash, SOL’s price corrected and approached support levels.<h2 id="header-0">Claim Instant $200 Worth Of DunkiMunki New Memecoins Free On <a href="https://dunkimunki.xyz/" rel="noopener noreferrer nofollow">www.DunkiMunki.xyz</a></h2><img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/05/Untitled-design.png?fit&#61;1920%2C1080&amp;ssl&#61;1" />Although SOL’s price recovered afterward, the ongoing low on-chain data is worrying investors about whether this upward trend can be sustained.<h2 id="header-1">Challenges Facing Solana’s Recovery: Analysis and Projections</h2>In the past 24 hours, <a href="https://cryptosheadlines.com/btc-and-sol-prices-surge-despite-us-fed-chairs-rate-hike-warning/" rel="noopener noreferrer nofollow">SOL witnessed a significant price</a> increase, triggering a wave of liquidations by sellers. Coinglass data indicates $13.2 million in SOL liquidations, with $9.5 million from short positions. Meanwhile, The Block’s dashboard reveals a notable decrease in new addresses on the Solana blockchain, dropping by 14.7% over the past 15 days from a weekly high of 915,000 to 780,000.<img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/05/cryptosheadlines6-1.png?resize&#61;640%2C169&amp;ssl&#61;1" />A robust influx of new addresses typically signals healthy network growth and increased utility, positively affecting Solana’s value. Conversely, the current slowdown in new addresses raises concerns among investors about potential issues such as reduced blockchain appeal, technical challenges, or competition from other platforms. This trend may hinder SOL’s ongoing recovery efforts.<img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/05/cryptosheadlines7.png?resize&#61;640%2C173&amp;ssl&#61;1" />Furthermore, the decrease in active addresses on the Solana blockchain, from 1.21 million to 1.1 million, adversely affects SOL’s price. Reduced user engagement and transaction activity weaken investor confidence, <a href="https://cryptosheadlines.com/solana-technical-analysis-high-volatility-and-sols-potential-return/" rel="noopener noreferrer nofollow">potentially dampening demand for SOL</a>. Analysts <a href="https://cryptosheadlines.com/solana-sol-anticipates-100-gains-in-2024/" rel="noopener noreferrer nofollow">anticipate SOL’s</a> recovery to stall as it encounters resistance channels without adequate buying pressure, potentially leading to a reversal for Solana.<h2 id="header-2">Claim Instant $200 Worth Of DunkiMunki New Memecoins Free On <a href="https://dunkimunki.xyz/" rel="noopener noreferrer nofollow">www.DunkiMunki.xyz</a></h2><img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/05/Untitled-design.png?fit&#61;1920%2C1080&amp;ssl&#61;1" /><h2 id="header-3">Solana Price Analysis: Bulls and Bears in Battle</h2>Bulls Dominating Market, Eyeing Crucial Resistance: The inability of bears to stop a rebound at $120 for Solana suggests continued dominance by bulls. Breaking above immediate Fibonacci channels, <a href="https://cryptosheadlines.com/solana-sol-price-dips-can-bulls-recover/" rel="noopener noreferrer nofollow">bulls are driving the SOL price</a> toward its crucial resistance near the 200-day EMA at $150. However, sellers are expected to strongly defend against a surge above this trend line. Currently, SOL is trading at $138, showing an impressive surge of over 11% in the last 24 hours.<a href="https://cryptosheadlines.com/justin-sun-endorses-dogecoin-shiba-inu-more-meme-coins/" rel="noopener noreferrer nofollow">Also Read: Justin Sun Endorses Dogecoin; Shiba Inu &amp; More Meme Coins</a><img src="https://i0.wp.com/cryptosheadlines.com/wp-content/uploads/2024/05/cryptosheadlines8.png?resize&#61;640%2C279&amp;ssl&#61;1" />Bearish Outlook and Support Levels: On the bearish side, there’s slight support at $116-$120. However, if this threshold is breached, selling pressure may intensify, potentially pushing the SOL/USDT pair down to $100. A deeper drop could further delay the onset of the next upward trend.Bulls’ Path to Regain Momentum: For bulls to regain momentum, they need to swiftly propel the price above the 200-day EMA, currently at $150. This move could catch aggressive bears off guard, possibly triggering a short squeeze. Subsequently, the pair might target the 50-day SMA at $166.Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

Solana Surges 10% Despite On-Chain Activity Dip: Outlook

Table of Contents

CryptosHeadlines.com

Other articles published on May 3, 2024

Dutch Anti-Fraud Agency Arrests Man Allegedly Involved in ZKasino Rug Pull

Project Dev Succumbs to Backlash: Forced to Distribute Funds – Implications for Crypto Coin (Symbol)

EigenLayer Airdrop: What Is The Controversy About EIGEN Token?

New Bitcoin ETF Decision from SEC as Bitcoin Surges After Weak Data from the US

Turbos Finance pioneers new liquidity strategies for Sui

Tether taps Chainalysis to track USDT activity on secondary markets

Join our free newsletter for daily crypto updates!