Rally

bullish

Solana

Bitcoin

Solana price and the broader market took a significant dip mid-week. In addition to the bearish crypto market conditions, the accelerated sell pressure can be attributed to geopolitical tension between Iran and Israel, which created FUD among market participants. Despite the 18% crash this week, the SOL price is positioned at crucial support, eyeing reversal, supported by on-chain growth. 
Also Read: <a href="https://coingape.com/markets/will-nonfarm-payroll-data-extend-bitcoin-price-correction-or-trigger-recovery-to-70k/">Will Nonfarm Payroll Data Extend Bitcoin Price Correction or Trigger Recovery to $70K?</a> 
<h2 id="b-sol-price-preparing-for-post-correction-rally-b">SOL Price Preparing for Post-Correction Rally</h2> 
Last month, SOL price noted a 60% recovery, pushing it from $121 to $193.8. This uptick assisted the altcoin to reclaim 50-day, 100-day, and 200-day Exponential Moving Averages (<a href="https://coingape.com/education/exponential-moving-average-how-to-leverage-it-in-crypto-market/">EMAs</a>) at $160, $154, and $140, respectively. 
Amid this recovery, SOL buyers escaped a four-month consolidation as the price breached the triangle pattern resistance on July 19th. This chart pattern, characterized by two converging trend lines, is known to squeeze the asset price into a narrow range before releasing the buildup momentum for the directional rally. 
<a href="https://coingape.com/price/solana/">Solana price</a> currently trades at $164.5, which is just above the 50-day and 100-day EMA support confluence at $160. Furthermore, SOL is also retesting the aforementioned triangle’s upper trendline, serving as a foothold. If buyers step in, it could trigger a potential recovery rally. 
In such a case, the <a href="https://coingape.com/price-predictions/solana-sol-price-prediction/">SOL price forecast</a> a rally that revisits $210, followed by $260. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img decoding="async" src="https://s3.tradingview.com/snapshots/8/8wIwWAjG.png" alt="SOL price" width="1946" height="893">
 <figcaption class="wp-caption-text">
 SOL/USDT- 1D Chart
 </figcaption>
</figure> 
The bullish on-chain data supports this positive outlook for <a href="https://coingape.com/binance-futures-overhauls-pepe-coin-solana-other-crypto-leverage-tiers/">SOL</a>. The number of new addresses interacting with the Solana network has consistently increased since May 2024. On August 1st, the number of New Addresses metrics surpassed a significant milestone of 1.25 million. 
Also Read: <a href="https://coingape.com/bitcoin-options-37000-contracts-expiring-on-august-2-amid-btc-volatility/">Bitcoin Options: 37000 Contracts Expiring on August 2 Amid BTC Volatility</a> 
<iframe loading="lazy" title="Number of New Addresses on the Solana Network (Daily, 7DMA)" src="https://www.theblock.co/data/on-chain-metrics/solana/number-of-new-addresses-on-the-solana-network-daily-7dma/embed" width="100%" height="420" frameborder="0"></iframe> 
Furthermore, the number of active addresses hovers above the 2 million mark despite the recent bearish developments surrounding Solana price.&nbsp; 
<iframe loading="lazy" title="Number of Active Addresses on the Solana Network (Daily, 7DMA)" src="https://www.theblock.co/data/on-chain-metrics/solana/number-of-active-addresses-on-the-solana-network-daily-7dma/embed" width="100%" height="420" frameborder="0"></iframe> 
All in all, the sustained growth in new and active addresses implies strong user engagement and adoption for Solana price. These massively bullish fundamentals support a further uptrend for SOL price. 
On the contrary, if the Solana price breaches the $160 support level on the daily time frame, it would attract sell pressure, opening up the altcoin for a further decline. Such a development could see SOL invalidate the aforementioned bullish thesis and trigger a 24% crash to the next support level at $130. 
The post <a href="https://coingape.com/markets/sol-price-crashes-18-on-chain-metrics-remain-bullish-200/">SOL Price Crashes 18%, On-chain Metrics Remain Bullish: $200 Retest Soon?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

SOL Price Crashes 18%, On-chain Metrics Remain Bullish: $200 Retest Soon?

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