The cryptocurrency market has rebounded from concerns about the potential sale of $9.4 billion worth of BTC by Mt. Gox, leading to a bullish trend in various altcoins over the past day. The price of SOL has sparked buying interest, breaking through $140. Despite the increase, the uptrend may be temporary, as on-chain indicators and network activity for SOL suggest a potential bearish trend.
Solana’s address statistics are facing a decline amid the recent surge, as Bitcoin’s dominance in the cryptocurrency market is declining, indicating that traders are shifting their investments from BTC to leading altcoins. On June 25, the Bitcoin dominance index fell by over 1.8%, marking the largest single-day decline since January.
According to Coinglass data, the SOL price has experienced approximately $3.7 million in liquidations contributed by both long and short traders. Long position holders accounted for approximately $1.7 million in this liquidation, while sellers liquidated positions worth $2 million.
The latest on-chain indicators for SOL show a downward trend. Over the past five days, the number of active addresses for Solana has significantly decreased from a high of 1.62 million to a low of 1.5 million. The decrease in user activity may be influenced by recent market volatility, reducing the likelihood of significant price fluctuations.
Furthermore, the number of new addresses for Solana has also decreased from a high of 1.06 million to 920,000, indicating a declining interest in trading on the platform. The decrease in new users could lead to reduced activity and potentially lower overall market participation for Solana.
However, there is also positive news, as DeFiLlama revealed that the total value locked (TVL) in the Solana network has increased to $4.2 billion as of June 26. This growth indicates increasing participation and trust in the Solana ecosystem, which could contribute to its price increase.
As for the next price movement for SOL, after a strong rebound from $122, Solana has re-entered a downward channel pattern. Bulls are currently breaking through the immediate Fib channel and keeping the price above the EMA20 trend line. At the time of writing, the SOL price is at $138, with a decrease of over 0.8% in the past 24 hours.
Shorts may attempt to halt this recovery rebound at the 100-day moving average ($141). If the price sharply reverses from this level, SOL/USDT may again fall to the key support level of $122. Bulls may defend this level, as a break below it could further drop the price to $100.
On the other hand, if bulls successfully push the price above the 100-day moving average, it indicates easing selling pressure. This could lead to the currency pair rising to the resistance level of $159. Breaking this level could result in the price ranging between $175 and $192.
