- Solana price faces rejection by the weekly resistance at $183.88, but maintains the bullish bias.
- On-chain data shows that SOL's active wallets are increasing, signaling a growing ecosystem and user engagement.
- A daily candlestick close below $133.92 would invalidate the bullish thesis.
Solana (SOL) price encountered resistance at the weekly level of $183.88 and is currently trading 2% lower around $175 on Tuesday. On-chain data indicates a rise in active wallets for SOL, highlighting an expanding ecosystem and heightened user engagement, potentially leading to a rally in the coming days.
Solana price shows potential for a rally
Solana price broke above a descending trendline – drawn from March highs – on July 19, leading to a 9% rally over the following two days. Currently, SOL faces resistance at the weekly level of $183.88 and is undergoing a corrective pullback. At the time of writing, trades down 2.2% at $174.93.
For investors seeking buying opportunities, the $155.22 support level presents a strategic entry point. This level aligns with the 50% price retracement level from the swing low of $121 on July 5 to the swing high of $185.13 on July 21, as well as trendline support and the daily support level. Therefore, $155.22 serves as a critical zone for potential price reversals.
If SOL bounces off the $155.22 level, it could rally 18% to retest its weekly resistance at $183.88.
This potential bounce is supported by indicators like the Relative Strength Index (RSI) and Awesome Oscillator (AO) on the daily chart, both comfortably above their respective mean levels of 50 and 0. These momentum indicators strongly indicate bullish dominance.
If the bulls are aggressive and the US Securities and Exchange Commission (SEC) approves a Solana Spot Exchange Traded Fund (ETF) , then Solana price could extend an additional rally of 11% to retest its daily high of $204.46 from April 1.
SOL/USDT daily chart
Data from SolScan Active Wallets refer to the number of unique wallet addresses that have engaged in transactions. An increase in active wallets typically indicates growing usage and engagement within a cryptocurrency network.
As in SOL's case, Active Wallets spiked from 1.08 million on July 20 to 1.24 million on July 21, the highest since late March. This increase generally indicates growing usage and engagement within a Solane network.
Solana Active Wallets chart
Despite the bullish thesis signaled by both on-chain data and technical analysis, if the SOL's daily candlestick breaks below $133.92, the outlook would shift to bearish. This scenario could lead to a decline of 8.5% to revisit the monthly support level at $122.77.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.