As key resistance levels fell, Solana's value began to slide, holding around $100, and investor interest waned. This drop in value comes after Bitcoin was rejected near its $53,000 peak, triggering a series of long liquidations across the market. The current bearish sentiment is supported by on-chain indicators as they suggest that Solana may be about to break below an immediate support line with signals pointing towards a bearish pattern.Solana's active addresses plummet: deciphering the trend behind it
In the past 24 hours, the cryptocurrency market has experienced over $300 million in total liquidations, with buyers dumping positions worth over $220 million. Particularly notable was Solana, where over $10 million in long positions were liquidated, causing the SOL price to drop rapidly to support around $100.
Solana’s recent price decline has been driven by investor anxiety following a market correction near its peak, and also by Bitcoin and Ethereum’s inability to maintain positions around $53,000 and $3,000. On-chain data shows that Solana’s active addresses are on a downward trend, falling from a high of 1.02 million to 691,000, a decrease of nearly 30% in recent weeks. The drop in active addresses indicates declining confidence in Solana, potentially leading to a decrease in whale investor trust and SOL price volatility.
However, the value transferred on the Solana network has recovered, rebounding from a low of approximately $218 billion to over $1 trillion. The recovery in transfer values indicates positive buying sentiment towards SOL and may stabilize its price and avoid further declines.
Where will SOL prices go? Recent trend analysis
The price of Solana is in a tight spot, with bears gaining the upper hand in an attempt to keep the price below key support levels. Currently, the price of SOL is $102, down more than 6.2% from the previous trading day. If it fails to break the $103 support line, the next support level is near $93, which could lead to a decline to the key support level of $80. A strong bounce in the price could push towards the 20-day exponential moving average (EMA), and a break above this level could lead to price consolidation between $108 and $80.
To maintain bullish dominance, the price needs to sustain above $100, which will set the stage for subsequent targeting of the important resistance level of EMA20 and the subsequent $116 mark. Solana’s long/short ratio has declined slightly recently and currently stands at 0.7562, with 57% of total positions anticipating a drop in price.
