Solana Active Address Drop: Is SOL Price Headed for a Massive Crash?
(note: the post contains data by CoinPedia)
The market has experienced significant volatility over the past 48 hours, leading to unstable conditions in both Bitcoin and the altcoin market. This volatility has particularly impacted Solana, leading to notable liquidations. As a result, a strong battle has been observed between buyers and sellers. Concurrently, various on-chain metrics for Solana have taken bearish positions, indicating a strong advantage for the bears.
In the past day, the price of SOL has experienced significant fluctuations near the $140 level. According to Coinglass, Solana’s total liquidations exceeded $21 million, with long positions accounting for $15 million of this total. Meanwhile, Solana’s trading volume saw a massive 90% increase, reaching $3.5 billion, indicating a substantial rise in trading activity within a single day.
As per the chart, Solana is currently forming a bearish descending triangle pattern, which will be confirmed if the price breaks and closes below $118. However, bulls are strongly defending a decline below the immediate Fib channels. As of writing, SOL price trades at $137, declining over 0.7% in the last 24 hours.
On a positive note for the bulls, the RSI indicates a potential positive divergence, hinting that selling pressure may be declining. Should the bulls drive the price above the 20-day EMA, the SOL/USDT pair could rally towards the 50-day SMA ($153) and then approach the downtrend line.
A break above the trend line might send the price toward a retest of $188. Conversely, if the price declines from the 20-day EMA and falls below $118, it will solidify the bearish pattern. The pair might then drop to $80.
The strong recovery from $121 demonstrates that bulls are actively defending the $118 support level. If the price rebounds from its current position and climbs above $150, we might see a surge in buying demand.
#BTC_Bounce_Back_to_57k #Ton_Coin_Surge #BinanceTurns7 #SolanaUSTD
