Key Takeaways
- Since February 2024, Solana’s on-chain activities, including active addresses, volume, and transactions, have been at a monthly low.
- SOL price remains bearish after forming a broadening wedge on the 4HR chart as the price could trade lower.
- Crypto analyst Ali_charts speculates that the price of SOL could crash to $60 following bearish price action.
The price of Solana (SOL) continues to witness massive sell-offs across its chain, with whale activity dropping over 60% since October 2024. The price of SOL continues to look weak as it heads to its key support zone of $130.
SOL’s price has rallied beyond the expectations of many traders and investors in the last year, outperforming Bitcoin and Ethereum by its ROI as this crypto project rallied to a new high of $295 following an influx of activities on its chain.
The price of SOL failed to protect its price above $290, as it had a sharp price decline towards $260 within a short period. This led to speculation that the price could be experiencing a minor retracement before rallying above $300, but this assumption was caught short with a consistent price decline towards $130 now.
The $130 to $120 region remains a key zone for whale activities. A break below this region could send more panic to SOL holders and the price, as bears would be looking for price opportunities to push the price lower.
Solana (SOL) Market Sentiment And On-chain Activities
Source – SOL On-chain Activities By Dune Analytics
According to Dune Analytics, Solana (SOL) on-chain activities have seen a significant crash since February 2024. Trading activities, transactions, and volume have decreased in the past few weeks as the price of SOL and other altcoins crashed across the crypto space.
With SOL active addresses decreasing across its network, this will lead to low liquidity and impact the overall price of SOL to be more bearish. According to crypto analyst Ali_charts, the price of SOL has formed a bearish broadening wedge with price trading in this channel. A break and close outside this beamish pattern could see the price of SOL trade towards $60.
SOL Price Analysis – Will Solana Hit 1000 Dollars?
Source – SOL 1D Price Action From TradingView
The chances of Solana’s (SOL) price prediction hitting $1,000 now continue to look daunting following the market crash from a high of $295 to a region of $135. The price of SOL faces a decrease in whale activities, which could further impact price trading if its key support zone of $130 to $120 fails to hold.
With the price of SOL suffering a potential price crash, institutional investors and whales would be cautious in trading SOL and strategically plan their entry at a more appropriate zone.
On the daily timeframe, the price of SOL approaches the key support zone of $130, with the price expected to rebound from this region to a high of $155 to $160. If the price of SOL fails to hold above $130 and breaks lower, we could see the price dip into the $80 to $70 zone before a potential price reversal to the upside.
The current market action and sentiment for SOL are bearish, with traders and investors paying close attention to how the price reacts around its key zone.
Key Support Zone For SOL$130
Key Resistance Zone For SOL – $155
