Solana’s ongoing price recovery is gaining momentum as network growth continues. Could this drive the price past the psychological barrier of $150?
With a bullish recovery this week, Solana has increased by 3.50% since Monday, resulting in a price jump of 7.75% over the last seven days. However, the SOL price action faces opposition from the 20-day EMA and struggles for a bullish comeback.
Will the rise in buying pressure amid the recovery run resurface the trend reversal above $150?
Solana Shifts Momentum In 1-hour Timeframe
On the 1-hour chart, a bullish reversal appears to be forming an inverted head-and-shoulders pattern. The neckline for this pattern is positioned at the 38.20% Fibonacci level, which is $136.53.
Currently, SOL’s price action suggests a potential right-shoulder formation, with a recent pullback of 0.76% over the past three hours. If the pattern holds and the Fibonacci levels guide the movement, the breakout rally could potentially target $145, aligning with the 61.80% Fibonacci level.
Furthermore, the 100 EMA and 200 EMA are nearing a bullish crossover on the 1-hour chart, indicating potential upward momentum. However, critical support for Solana is currently at the 20 EMA, which stands at $133. According to the Fibonacci retracement, the immediate key support level is 23.60%, around $130.68.
At press time, Solana trades at $135.
Solana Network Hits 5.5M Daily Active Addresses
Amid the recovering rally, Solana registered a massive network surge on September 10. With a boost in daily active addresses, Solana recorded a recent high of 5.5 million daily active account addresses.
This impressive figure surpasses both competitors and leading Ethereum layer-2 projects. Notably, these 5.5 million accounts represent roughly twice the daily active addresses across major networks.
Further, the Solana blockchain maintains scalability with 500 true transactions per second, beating rival chains by a huge margin and supporting the massive surge in daily active addresses.
Massive Supply Incoming?
However, in recent news, the FTX/Almeda-associated wallet has redeemed 177,693 SOL tokens worth $23.75 million from Solana’s Proof of Staking. As the crypto market stands on the verge of a bullish recovery, the FTX/Almeda may soon transfer these SOL tokens to a centralized exchange to cash out.
Currently, the address holds up to 7.0757 million SOL tokens worth $943 million in staking. Notably, most of the SOL held by FTX could have been sold through over-the-counter deals.
Will Solana Surpass $150?
In the larger picture, the inverted head-and-shoulders pattern and the 7-day recovery suggest a potential rounding bottom pattern on the 1-hour chart. The neckline for this significant trend reversal pattern is at the previous swing high of $161.
Therefore, based on the current price action analysis, Solana’s upside potential could be approximately 19.74% from its current market price.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
