07 Jun

Explore the rapid expansion of Solana's (SOL) network and its implications for future price trends.

Understand how the surge in active wallets and the creation of new token accounts signal a positive outlook for SOL's price.

Analysis of Solana Price Action

The chart of Solana (SOL/USDT) exhibits a positive technical arrangement. The 100 EMA has been above the price of the coin and is serving as a solid support level. This steady support shows that buyers are confident and intervening to protect this price range, which is a bullish indication.

The bullish view is further supported by the Ichimoku Cloud on the daily chart. Since the price has resisted breaking below this cloud, the fundamental trend is still upward.

In this instance, the cloud functions as a strong foundation for future upward movement. It frequently operates as a dynamic support or resistance area.

Resistance levels to monitor include $177.38 and $186.38, with the former having proven to be a formidable barrier after multiple tests. A breakthrough above this level could signal a move towards the next resistance at $186.38, which aligns with previous swing highs and may mark the beginning of an extended rally if breached.

Solana is currently displaying bullish signs, as evidenced by consistent support from the 100 EMA and rejection of lower prices by the Ichimoku Cloud, indicating buyer dominance. 

However, it's crucial to closely monitor support levels, as failure to hold them could indicate a shift in momentum. 

Nevertheless, the overall outlook remains positive, with potential for further gains upon breaking resistance levels.

The surge in active wallets on the Solana network, rising from 700,000 to 1.1 million over the past month, signifies a growing user base and increased network activity. This uptrend, particularly noticeable since mid-May and peaking around June 5th, suggests a healthy and expanding ecosystem, with more users engaging in transactions, dApps, and smart contracts.

Similarly, the increase in new token accounts on the Solana network, fluctuating between 2.5 million and 3.6 million from May 8 to June 5, indicates growing interest in launching and managing new tokens on the network. The peak on June 5th, nearly reaching 3.6 million new token accounts, underscores a significant surge in activity and interest.

In terms of price outlook, Solana (SOL/USDT) presents a promising technical setup, trading above the 100 EMA and consistently resisting drops below the daily Ichimoku Cloud. 

These indicators, coupled with the rise in active wallets and new token accounts, suggest a bullish trajectory for Solana, offering investors potential opportunities for further price appreciation.

June 2024, Cryptoniteuae

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