Solana’s On-Chain Metrics Dip, Bulls Eye Comeback Past $162

• Despite a drop in new addresses, SOL could see a bullish rebound beyond $162.
• Declining new SOL addresses hint at fading investor interest, fueling bearish sentiment.
• SOL’s price faces a critical test at the $158 200-day EMA, pivotal for bullish momentum.

Amidst the recent surge in Bitcoin’s price, Solana (SOL) has garnered attention for its steady recovery, albeit with a mixed bag of on-chain metrics. Despite a decline in new addresses, there are signs of a potential bullish resurgence if SOL surpasses the $162 mark.

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In a tug-of-war between buyers and sellers, SOL currently trades within a range-bound ascending channel. The recent uptick in buyer activity has led to significant liquidations, with Coinglass reporting total liquidations nearing $6.8 million, emphasizing the volatility in the market.

However, data reveals a concerning trend: a notable drop in new SOL addresses from 915,000 to 866,000. This decline suggests waning investor interest, fostering a bearish sentiment in the market. Moreover, there are concerns that whale activity might exacerbate price dips in SOL, adding to the prevailing instability. The aftermath of Bitcoin’s halving further exacerbates pressure on miners, contributing to market uncertainty.

Despite these challenges, there are glimmers of hope. On-chain value transferred has been on the rise, climbing from $64 billion to $90 billion, indicating sustained buying interest. However, the long/short ratio’s decline to 0.8512 underscores a growing bearish dominance, with 54% of positions anticipating a SOL price drop.

Technical analysis points to a critical juncture for SOL’s price. Having reached its 200-day Exponential Moving Average (EMA) at $158, SOL faces significant resistance. Yet, if it surpasses this barrier and $162, it could signal a bullish resurgence. Conversely, failure to do so could precipitate further declines, potentially testing support levels at $126 and even $100.

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