Solana’s On-Chain Activity Rises – SOL Price To Rally?

Solana's On-Chain Activity Surges, Signaling Potential Price Rally

In recent days, crucial metrics on the Solana blockchain have experienced a significant uptick, sparking speculation about a possible price surge for SOL.

Rising On-Chain Metrics

Data from Solscan reveals that active wallets on the Solana blockchain have climbed to over 919,000 within the past seven days. Additionally, new token accounts have exceeded 9 million. These surging metrics hint at a possible shift in price trajectory.

SOL Price Reaction

The rise in on-chain metrics aligns with a sustained uptrend in SOL's price over the past week. The price, which was in a downtrend five weeks ago, has since enjoyed its longest period of bullish days.

However, it's worth noting that SOL's price remains below the 50-day simple moving average (SMA), which could act as a potential resistance level. Furthermore, it is still within a falling wedge pattern. A breakout from these levels is necessary to confirm any substantial upward movement.

Potential for a Short-Term Rally

A breakout above the 50 SMA and the falling wedge pattern, combined with continued bullish on-chain metrics, could trigger a short-term rally for SOL.