Could Solana (SOL) Be Poised for a Rebound Towards $190? Analyzing Onchain Metrics and Market Trends
The post Could Solana (SOL) Be Poised for a Rebound Towards $190? Analyzing Onchain Metrics and Market Trends appeared on BitcoinEthereumNews.com.
Solana’s recent downturn raises questions about its path back to $190. The current SOL support level has shown signs of fragility amid a broader altcoin market recovery. “Increased activity suggests future demand for SOL to cover blockchain processing fees,” analysts observe. As Solana (SOL) grapples with a significant price pullback, the technical and fundamental metrics may offer insight into its medium-term potential. Solana’s Struggles with Price Support Amid Market Volatility Solana’s native token, SOL, has witnessed a 10% drop from October 1 to October 9, leading to fears of a breach of the crucial $140 support level. Though markets reflect a modest 4% increase across altcoins in this timeframe, SOL appears increasingly disconnected from this positive trend. Investors could benefit from examining the underlying data driving SOL’s market performance and how it has paralleled the dynamics of its competitors. Analyzing On-chain Metrics and Market Dynamics A closer examination of Solana’s on-chain data reveals mixed signals, complicating predictions regarding SOL price recovery. While a rise in decentralized applications (DApps) typically spurs token accumulation for participation in airdrops and incentives, the recent data indicates that falling prices do not automatically translate to increased usage. Analyzing on-chain activity against competitive blockchains will be vital in determining the future position of Solana in an evolving landscape. Recent reports from DefiLlama indicate that Solana maintained an average daily transaction volume of $1.8 billion in late July. However, this number diminished to about $1.2 billion recently, marking a troubling 33% decline. Comparatively, Ethereum, whose volume fell by only 7%, reflects stronger relative network activity. Further market analysis is required to measure SOL’s positioning in the face of rising competitors such as BNB Chain, which has seen a surge in activity, including a 48% increase in on-chain volumes during the same timeframe. Growth in Total Value Locked…
Filed under: News - @ October 9, 2024 11:27 pm