Solana Price Forms Rare Bullish Pattern as Key Network Metrics Soar
The Solana (SOL) token has experienced a decline in price over the past two days, reaching its lowest level since January 3, as risk-off sentiment spreads across financial markets. This downturn is largely attributed to Donald Trump’s threat of new tariffs on key NATO members, which has led to a decline in investor confidence. Despite this, Solana’s strong technical and fundamental data suggest a potential recovery in the near term.
According to recent data, Solana has formed a cup and handle pattern on the daily chart, with the continued decline being part of the formation of the handle section. This pattern is a common bullish continuation pattern, indicating a potential upswing in the coin’s price. Additionally, third-party data shows that Solana transactions are surging, with over 1.86 billion transactions processed in the last 30 days, representing a 1.8% increase.
Network Metrics and Transaction Costs
Solana’s network metrics are impressive, with the blockchain processing more transactions than other popular chains such as Ethereum, BNB Chain, Tron, and Polygon combined. The transaction costs on Solana were also significantly higher than other networks, resulting in an increase in network fees, which rose to $18.5 million. Furthermore, Solana had over 72 million active addresses during this period, an 18% increase, making it one of the most actively used blockchains in the crypto industry.
Active Solana Addresses | Source: Nansen
DEX Volume and Tokenized Stocks
Solana’s DEX volume has surged to over $114 billion in the last 30 days, outpacing Ethereum, Base, and BSC Chain combined. This growth is likely to accelerate after the network rolls out the Alpenglow upgrade later this quarter, which will introduce new features and faster speeds. Moreover, Solana is becoming a major player in the tokenized stocks industry, with its total value rising to over $1.6 billion.
Spot Solana ETFs have also seen significant inflows this year, with over $97 million in inflows in January, bringing total assets to $1.2 billion. This increased investment in Solana-based ETFs is a testament to the coin’s growing popularity and potential for long-term growth.
Technical Analysis of Solana Price
SOL price chart | Source: crypto.news
The daily time chart shows that the Solana token declined sharply after hitting key resistance at $146, which was a few points below the 23.6% Fibonacci retracement level. However, this pullback is likely part of the handle section of the cup and handle pattern, indicating a potential upswing in the coin’s price. The coin remains in the green zone, a sign that the upswing remains intact, and is likely to rise to the 50% Fibonacci retracement level at $185, representing a 40% increase from current levels.
For more information on Solana’s price and network metrics, visit https://crypto.news/solana-price-forms-rare-bullish-pattern-as-key-network-metrics-soar/
