Solana, like many other cryptocurrencies, has faced challenges in recent days due to increasing selling pressure and a major hack on the Bybit exchange worth $1.5 billion. These events have led to a drop in SOL’s price and a strengthening of resistance levels. Additionally, low network activities have contributed to the decline in on-chain metrics, signaling potential further pain for SOL in breaking through resistance levels.
One key indicator of Solana’s struggles is the steep drop in the number of addresses on the network. This decline comes in the wake of the Libra meme coin scam and the significant theft from Bybit. Despite these challenges, there has been some positive momentum for SOL, particularly surrounding excitement over exchange-traded funds (ETFs). Franklin Templeton recently filed for a new ETF to track Solana’s spot price, indicating growing interest in the cryptocurrency.
However, on-chain metrics for Solana have been deteriorating, with a decrease in the number of transactions and active addresses on the network. This downward trend suggests increasing bearish control over Solana, as network activity weakens and the potential for an upward rally diminishes. Additionally, the increasing number of short positions indicates a bearish outlook for SOL’s price.
Looking ahead, the crypto market is showing signs of recovery, with buyers pushing SOL’s price above immediate Fib levels. As of the latest data, SOL is trading at $173, up over 2.8% in the last 24 hours. The SOL/USDT trading pair continues to face resistance below $180, with strong dominance from bears. If the price falls below the EMA20 trend line on the 1-hour chart, sellers may push it down to the $160 support level.
However, if the price manages to hold above $180 and the RSI level remains steady around the midline, buyers may have an opportunity to push the price higher towards $220. Overall, the future of SOL’s price remains uncertain, with various factors influencing its trajectory in the coming days and weeks.