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Solana Price Aims Next Leap Amid Rising Active Addresses and Futures Interest
Solana Price Seeks Stability Above $170
Solana, the native cryptocurrency on the Solana network, has been showcasing a sluggish trend throughout the week, seeking stability above the $170 level. The neutral weekend has triggered a 0.55% increase in Solana price today, hitting $182, while the market cap is $84.6. Despite the price action hinting at no major movement, on-chain data and derivative data show a drawdown in Solana’s growth. Will price recovery follow next week?
Triangle Pattern Formation
The Solana price forecast shows a sideways trend dominated the asset for the past four months. The altcoin resonated strictly between two converging trendlines, revealing a triangle pattern formation. This continuation pattern often spotted as established is known to recuperate the exhausted bullish momentum.
Breaking Out of the Triangle Pattern
On 20th July, this rising price breached the triangle pattern to signal the end of consolidation. However, the altcoin traded sideways since the breakout, seeking stability above the $170 mark. The upswing in the upper boundary of the Bollinger Band indicator hints that the buying momentum is intact.
Rising Active Addresses and Futures Interest
Despite ongoing consolidation, the number of active addresses on the Solana network continues to expand. According to data from TheBlock, this upward trajectory in on-chain metrics reached 2 million active addresses by mid-week. This growth implies a robust and expanding user base, which could signal strong network health and potentially attract more investment into Solana.
Sol Futures Open Interest
A similar trend has been noted in SOL Futures Open Interest, according to data from the derivative market data provider CoinGlass. Open Interest has surged from a July low of $1.77 billion to the current value of $2.95 billion, marking a substantial 66% growth. This increase suggests a rising interest and bullish sentiment among traders towards Solana’s future market movements.
Conclusion
In conclusion, if the Solana price sustains above $170, the triangle breakout should drive its rally to $210, followed by $266. However, if the SOL price breaks below the $170 support, the asset may enter a prolonged consolidation and retest multi-month support at $120. Amid a broader market recovery, a breakout from four months of consolidation, and an upward trend in Active Addresses and Open Interest, Solana is well-positioned to pursue the $200 mark.
Frequently Asked Questions
Q: What does the number of active addresses represent?
A: The number of active addresses represents the unique addresses participating in transactions on the network. A growing number of active addresses indicates increased usage, adoption, and activity on the blockchain.
Q: What does Open Interest refer to?
A: Open Interest refers to the total number of outstanding futures contracts that have not been settled. An increase in Open Interest indicates that new money is flowing into the market, reflecting increased interest and participation from traders.
Q: Is Solana well-positioned to pursue the $200 mark?
A: Amid a broader market recovery, a breakout from four months of consolidation, and an upward trend in Active Addresses and Open Interest, Solana is well-positioned to pursue the $200 mark.
