Solana
Bullish with network growth and support
Learn about Solana’s rapid growth (GROUND) network and its impact on future price movements.
Find out why the increase in active wallets and new token accounts portends a bullish outlook for SOL.
Solana Price Action Analysis
THE Solana The chart (SOL/USDT) shows a promising technical setup. The cryptocurrency is trading above 100 EMA, which is a strong support level. This consistency support is a bullish indicatorwhich suggests that buyers are confident and are stepping in to defend this price level.
The Ichimoku cloud on the daily chart also reinforces the bullish outlook. Price has refused to break through this cloud, indicating that the underlying trend remains up.
This cloud often serves as a dynamic support or resistance area and, in this case, it acts as a solid base for a potential upward move.
Learn more: How to Buy Solana (SOL) and Everything You Need to Know
Solana daily price analysis. Source: Trading View
The chart identifies several crucial support and resistance levels. The immediate support zone lies between $158.00 and $151. Align with the upper boundary of Ichimoku Cloud’s daily consolidation and the 100 daily EMA.
On the positive side, the resistance levels to watch are $177.38 and $186.38. Testing the first one several times made it a solid barrier. A break above this level could indicate a move towards the next resistance at 186.38, which aligns with previous highs and could signal the start of a more extended rally in the event of a breakout.
Indeed, Solana is showing signs of an uptrend. The consistent support of the 100 EMA and rejection of lower prices by the Ichimoku Cloud suggests that buyers are in control. But he is essential to closely monitor support levels.
If price fails to hold these supports, it indicates a change in momentum. For now, the outlook remains positive, with potential for further gains if resistance levels are breached.
Increase in active wallets highlights Solana’s network growth
The graph of active wallets on the Solana network shows a significant increase from 700,000 to 1.1 million over the past month. This substantial increase in the number of active wallets indicates a growing user base and increased activity on the network.
The upward trend started around mid-May and saw a sharp increase in early June. Reach approximately 1.1 million active wallets by June 5.
Such an increase in the number of active wallets generally signals a healthy and expanding ecosystem. More active wallets suggest that more users are interacting with the network. Participate in transactions and interact with decentralized applications (dApps) and smart contracts.
This factor can boost investor confidence, which could push the price of SOL higher.
Increase in new token accounts signals robust growth for the ecosystem
The “New Token Accounts” metric measures the number of new token accounts created on the Solana network. After all, token accounts are essential for holding and trading different types of tokens (both fungible and non-fungible) on the Solana blockchain.
Ultimately, a higher number of new token accounts indicates increased interest in creating and managing new tokens on the network. This increase signals positive growth and adoption. Suggesting that more and more projects are being launched and more users are participating in the ecosystem.
Learn more: Solana (SOL) Price Prediction 2024/2025/2030
From May 8 to June 5, the number of new token accounts on the Solana network showed an upward trend, oscillating between 2.5 million and 3.6 million. This increase signifies a growing interest in launching new tokens and projects on the network.
The June 5 peak, reaching nearly 3.6 million new token accounts, highlights a significant increase in activity and interest.
SOL Price Outlook: Bullish
The Solana (SOL/USDT) chart shows a promising technical setup, with the cryptocurrency trading above the 100 EMA, which acts as a robust support level. This consistent support indicates bullish momentum, as buyers confidently step in to defend this price level.
The daily Ichimoku cloud further strengthens the bullish outlook. The price has still refused to break through this cloud, suggesting an upward trend. The cloud often serves as a dynamic support or resistance zone, and in this scenario it provides a solid foundation for potential upward movement.
Overall, the combination of technical indicators, increase in active wallets, and increase in new token accounts points to a bullish outlook for Solana.
Investors should consider these factors when making strategic decisions, as they suggest a robust and growing ecosystem with potential for further price appreciation.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decision. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.