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Solana (SOL) Network Growth and Strong Support Signal Bullish Price Outlook

3 mins
Updated by Ryan James
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In Brief

  • Solana's price is supported by the 100 EMA and Ichimoku Cloud, indicating a bullish trend with potential gains.
  • Active wallets on Solana rose from 700,000 to 1.1 million in a month, signaling increased network activity and user engagement.
  • The surge in new token accounts on Solana points to robust growth and adoption, boosting investor confidence and SOL's price outlook.
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Discover the rapid growth of Solana’s (SOL) network and its impact on future price movements.

Learn why the increase in active wallets and new token accounts points to a bullish outlook for SOL.

Solana Price Action Analysis

The Solana (SOL/USDT) chart shows a promising technical setup. The cryptocurrency has been trading above the 100 EMA, which is acting as a strong support level. This consistent support is a bullish indicator, suggesting that buyers are confident and stepping in to defend this price level.

The Ichimoku Cloud on the daily chart also reinforces the bullish outlook. The price has refused to break below this cloud, indicating that the underlying trend remains upward.

This cloud often serves as a dynamic support or resistance area, and in this case, it acts as a solid base for potential upward movement.

Read More: How to Buy Solana (SOL) and Everything You Need To Know

Solana Daily Price Analysis. Source: TradingView
Solana Daily Price Analysis. Source: TradingView

The chart identifies several crucial support and resistance levels. The immediate support zone lies between $158.00 and $151. Aligning with the upper boundary of the daily Ichimoku Cloud consolidation and the daily 100 EMA.

On the upside, resistance levels to watch are $177.38 and $186.38.Testing the former multiple times has made it a strong barrier. A break above this level could indicate a move towards the next resistance at 186.38, which aligns with previous swing highs and could signal the start of a more extended rally if broken.

Indeed, Solana is showing signs of a bullish trend. The consistent support from the 100 EMA and the rejection of lower prices by the Ichimoku Cloud suggest that buyers are in control. But, it is essential to monitor the support levels closely.

If the price fails to hold these supports, it indicates a shift in momentum. For now, the outlook remains positive, with the potential for further gains if resistance levels are breached.

Surge in Active Wallets Highlights Solana’s Network Growth

The chart for active wallets on the Solana network shows a significant rise from 700,000 to 1.1 million over the past month. This substantial increase in active wallets indicates a growing user base and heightened activity on the network.

The upward trend began around mid-May and saw a sharp increase in early June. Reaching approximately 1.1 million active wallets by June 5th.

Solana: Active Wallets. Source: SolScan
Solana: Active Wallets. Source: SolScan

Such an increase in active wallets generally signals a healthy and expanding ecosystem. More active wallets suggest that more users are engaging with the network. Participating in transactions, and interacting with decentralized applications (dApps) and smart contracts.

This factor can boost investor confidence, potentially driving up the price of SOL.

Surge in New Token Accounts Signals Robust Growth for the ecosystem

The “New Token Accounts” metric measures the number of new token accounts created on the Solana network. After all, token accounts are essential for holding and transacting various types of tokens (both fungible and non-fungible) on the Solana blockchain.

Eventually, a higher number of new token accounts indicates increased interest in creating and managing new tokens on the network. This increase signals positive growth and adoption. Suggesting that more projects are launching and more users are participating in the ecosystem.

Read More: Solana (SOL) Price Prediction 2024/2025/2030

Solana: New Token Accounts. Source: SolScan
Solana: New Token Accounts. Source: SolScan

From May 8 to June 5, the number of new token accounts on the Solana network has shown an upward trend, fluctuating between 2.5 million and 3.6 million. This increase signifies a growing interest in launching new tokens and projects on the network.

The peak on June 5th, reaching nearly 3.6 million new token accounts, underscores a significant surge in activity and interest.

SOL Price Outlook: Bullish

The Solana (SOL/USDT) chart presents a promising technical setup, with the cryptocurrency trading above the 100 EMA, which acts as a robust support level. This steady support indicates bullish momentum, as buyers confidently step in to defend this price level.

The daily Ichimoku Cloud further reinforces the bullish outlook. The price has consistently refused to break below this cloud, suggesting an upward trend. The cloud often serves as a dynamic support or resistance area, and in this scenario, it provides a solid base for potential upward movement.

Overall, the combination of technical indicators, rising active wallets, and increased new token accounts points to a bullish outlook for Solana.

Investors should consider these factors when making strategic decisions, as they suggest a robust and growing ecosystem with the potential for further price appreciation.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Adam Mourad
Adam, 23, is a full-time on-chain analyst and part-time trader in the Web3 space. He is the founder and CEO of 0nchained, an on-chain data reporting service. Adam started his journey with CryptoQuant, where he still works as an analyst. Over the past year, he has developed over 30 indicators and written more than 120 analyses. His passions include data and analytics, cryptocurrency, and supercars, particularly red Ferraris and yellow Porsche GT3s. His professional achievements are...
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