The post Solana Faces Decline Toward $100 As Active Addresses Plunge By 30%! Here’s Next SOL Price Level appeared first on Coinpedia Fintech News
Solana’s value is witnessing a decline in investor interest, triggered by a drop from a key resistance level. This has plunged investor sentiment by maintaining its price around the $100 threshold. This drop in value follows Bitcoin’s rejection near the $53,000 peak, sparking a series of long liquidations throughout the market. As a result, the current bearish sentiment is supported by on-chain metrics as they indicate that Solana’s decline below immediate support lines might be nearing, with signals pointing towards a bearish pattern.
Solana’s Active Addresses Sees A Steep Decline
In the past 24 hours, the cryptocurrency market experienced total liquidations exceeding $300 million, with buyers offloading positions valued at more than $220 million. Solana, in particular, saw long positions worth over $10 million being liquidated. This triggered an immediate selling pressure on the SOL price and plunged it to the support around $100.
The recent drop in Solana’s price resulted from investor anxiety following a market correction when it was near its highest values. This decline was brought by Bitcoin and Ethereum’s inability to hold their positions around $53,000 and $3,000, respectively.
On-chain data reveals a downward trend in Solana’s active addresses, with a reduction from a high of 1.02 million to 691,000, marking a nearly 30% decrease over recent weeks. This decline in active addresses indicates declining confidence in Solana, potentially plunging whale investors’ trust and SOL price volatility.
However, the value transferred on Solana’s network has seen a recovery, bouncing back from a low of approximately $218 billion to surpass $1 trillion. This recovery in transferred value shows a positive buying sentiment towards SOL, possibly stabilizing its price from further declines.
What’s Next For SOL Price?
Bears currently have the upper hand on the price chart, with sellers aiming to hold the price below the crucial support level in the upcoming hours. However, buyers are putting up a strong fight to prevent a drop below the immediate Fibonacci level. At the time of writing, the SOL price stands at $102, marking a decrease of over 6.2% from the previous day’s price.
Should the price not manage to rise above the $103 support line, the next support level is found around the $93 mark. If this level is compromised, SOL’s price might fall to a crucial support level at $80. A robust recovery from $80 could send the price towards the 20-day Exponential Moving Average (EMA). Crossing this level could result in the price consolidating between $108 and $80.
For bulls to maintain their dominance, they need to ensure the price remains above $100. Achieving this could set the stage for targeting the subsequent significant resistance level at EMA20 and then the $116 mark.
Recently, the long/short ratio for Solana has decreased, now at 0.7562, with 57% of total positions anticipating a drop in its price.