The cryptocurrency market has rebounded from concerns about the possible sale of $9.4 billion worth of BTC by Mt Gox, leading to a bullish trend in various altcoins over the past day. The price of SOL has sparked buying interest, breaking through $140. Despite the rise, the increase may be temporary, as on-chain indicators and network activity for SOL suggest potential bearish trends.
The recent rise in Solana comes as Bitcoin’s dominance in the cryptocurrency market declines, indicating that traders are shifting their investments from BTC to leading altcoins. On June 25, the Bitcoin dominance index fell by over 1.8%, marking the largest single-day drop since January.
According to Coinglass data, approximately $3.7 million in liquidations has occurred in the SOL market, with contributions from both long and short traders. The data shows that long position holders accounted for approximately $1.7 million in the liquidation, while sellers liquidated positions worth $2 million.
The latest on-chain indicators for SOL show a downward trend. Over the past five days, the number of active addresses on Solana has decreased significantly from a high of 1.62 million to a low of 1.5 million. The decrease in user activity may be influenced by recent market fluctuations, reducing the likelihood of significant price volatility.
Additionally, the number of new addresses on Solana has also declined from a high of 1.06 million to 920,000. This suggests a decreasing interest in trading on the platform, which may lead to reduced activity and lower overall market participation for Solana.
However, there is also positive news, as DeFiLlama revealed that the total value locked (TVL) in the Solana network has increased to $4.2 billion as of June 26. This growth indicates that more people and developers are participating in and trusting the Solana ecosystem, which could help boost its price.
As for the next steps for SOL price, Solana has rebounded strongly from $122, re-entering a downward channel pattern. Bulls are currently breaking through the immediate Fib channel and keeping the price above the EMA20 trend line. At the time of writing, the SOL price is at $138, down over 0.8% in the past 24 hours.
Shorts may attempt to halt this recovery bounce at the 100-day moving average ($141). If the price sharply reverses from this level, SOL/USDT may fall back to the key support level of $122. Bulls may defend this level, as breaking below it could lead to further declines to $100.
On the other hand, if bulls successfully push the price above the 100-day moving average, it indicates that selling pressure is easing. This could lead to the currency pair rising to the resistance line at $159. Breaking this level could lead to a consolidation in the price between $175 and $192.