Solana (SOL) recently achieved a record-breaking milestone in daily active addresses, leading to speculation about the potential impact on its price. Despite the surge in user activity, SOL’s price has been struggling, similar to other altcoins in the current market climate.
With this increase in activity and an upcoming major Solana event, investors are questioning whether SOL could see a price recovery soon.
Solana Active Addresses Surge Ahead of Breakpoint
On September 10, Solana recorded 5.4 million daily active addresses, the highest in the blockchain’s history, according to Artemis data. Active addresses are a key indicator of a project’s health, reflecting its utility and user participation—factors that can be crucial in driving a cryptocurrency's value.
This dramatic rise in user engagement is considered bullish for SOL, as it demonstrates increasing network activity. This momentum could help SOL recover some of its recent losses. Another catalyst for a potential price increase is the upcoming Breakpoint conference, scheduled for September 20-21. The event, which highlights technological advancements within the Solana ecosystem, has historically had a positive effect on SOL’s price.
For example, in 2023, SOL’s price surged from $21 to $65 between mid-October and mid-November around the Breakpoint event. However, in 2022, the bear market limited any significant rally. In 2021, a "buy the rumor, sell the news" effect saw SOL’s price jump from $157 to $258 leading up to the event, followed by a decline once the conference began on November 7. If this pattern repeats, SOL's price could rise before the upcoming Breakpoint event.
SOL Price Prediction: Dip, Then Breakout
On the daily chart, Solana’s Stochastic Relative Strength Index (Stoch RSI) indicates that the token has entered the overbought region. The Stoch RSI measures the strength of price trends and signals when an asset is overbought (above 80.00) or oversold (below 20.00). Currently, SOL's overbought condition suggests a short-term price decline may be on the horizon.
Based on current trends, SOL’s price could dip below $130, with a key support level at $127.78 offering a potential rebound. If SOL manages to bounce off this support, it could rise above both the 20 and 50 Exponential Moving Averages (EMAs), marked in blue and yellow, respectively. If this happens, SOL’s next price target before the Breakpoint event could be around $169.63.
However, if the number of active addresses declines, this bullish outlook may not materialize. In that case, SOL’s price could fall further to around $124.19.
Conclusion
Solana’s all-time high in daily active addresses is a strong bullish indicator for the network, signaling increased user activity and utility. Coupled with the upcoming Breakpoint event, these factors suggest that SOL could experience a significant price movement in the coming weeks. While a short-term dip is possible, investors are optimistic about a potential breakout, especially if the surge in active addresses continues.
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