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.