Solana
Solana Reaches 41.5M Active Addresses Amid 13% Price Drop, Analyst Predicts 53% Rise
Solana (SOL) sits at an interesting crossroads. The blockchain platform has seen an increase in activity, reaching record levels of active addresses, and has upcoming upgrades to improve its performance. However, recent market fluctuations have caused the price of SOL to decline, making investors cautious about the near-term outlook.
In May, the Solana network processed a record 41.5 million active addresses, demonstrating its growing user base. The next Firedancer upgrade in 2025 also promises to improve scalability and eliminate downtime, addressing some of the current network limitations. The integration with Circle, a major digital currency company, further strengthened Solana’s appeal by introducing programmable wallets and a gas station to the platform.
Despite these positive developments, SOL’s market performance is under pressure. The cryptocurrency has seen a significant slowdown over the past week, plunging more than 13%. This drop has prompted cautious analysis from crypto experts.
Crypto Analyst Morecryptoonl offers a conservative forecast for Solana, suggesting that it moves in a triangular wave pattern (4) based on Elliott wave theory. This trend indicates a potential downward movement in the short term. The analysis highlights critical price levels, with a likely range between $119 and $190, marking the swing zone during the wave triangle formation (4).
According to Morecryptoonl, the immediate resistance range is between $159.55 and $168.37. Overcoming this zone is crucial for SOL to signal potential bullish momentum. Using Fibonacci ratios, the analyst identifies key retracement points at 0.5 ($159.55), 0.618 ($163.13), and 0.786 ($168.37), which are levels of likely resistance during correction waves.
Analyst Predicts Potential Upside of 53% for Solana
However, not all analysts share a bearish outlook. Analyst Ali Martinez offers a mixed outlook, predicting a potential upside of 53% for SOL. Martinez identifies critical support and resistance levels at $143 and $178, respectively. These thresholds are key to determining whether Solana will experience a significant price increase or face further declines. The formation of a symmetrical triangle over the past two months supports a potential bullish breakout.
By mid-March 2024, Solana’s price rose from around $101 to nearly $210, forming a symmetrical triangle. After several rejections at $210, price returned and found support around $141, aligning with the 0.382 Fibonacci level. Solana price then surged, encountering resistance at the 0.786 Fibonacci level at $185 before falling back to $157.
Currently, Solana is trading near $150.95, just above the 0.5 Fibonacci level at $143. This crucial area aligns with the bottom edge of the symmetrical triangle. Martinez suggests that if Solana price remains above $143, it could bounce towards the $178 resistance, potentially reaching $280. However, a fall below $143 could signal further declines, possibly to $67, highlighting market volatility and uncertainty.
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