- Solana price is skyrocketing toward $180 amid a surge in active addresses and trading volume
- The number of new Solana addresses has increased from 807,000 to 810,000, indicating growing market interest
- Analysts predict that if Solana’s price moves beyond the moving averages and holds above resistance, it could target a rally towards $192
Solana has emerged as one of the top performers in the crypto market this month, with its price surging over 50% throughout May. The recent buying frenzy has propelled Solana above key resistance levels and triggered a surge in on-chain activity. But what’s driving this massive rally, and can it be sustained?
Surge in New Addresses
According to data from IntoTheBlock, Solana has witnessed a significant jump in the number of new addresses on its network. This count has climbed from 807,000 to 810,000, indicating growing interest in the asset. More new users coming onto the network strengthens bullish sentiment around Solana.
Spike in Active Addresses
In tandem with the influx of new addresses, the number of active addresses has also increased notably over the past five days. Data shows active Solana addresses jumping from 1.15 million to 1.17 million. This rising user activity on the network is driving up trading volumes and demand.
Trading Volume Jumps 50%
Unsurprisingly, the past 24 hours saw trading volumes for Solana spike by over 50%. The surge in network activity has translated into greater market interest, with traders piling into SOL. Moreover, data shows the value transferred on-chain rebounding from $93 billion to $130 billion.
Long/Short Ratio Spikes
According to IntoTheBlock’s data, the long/short ratio for Solana has surged to 12,277. This means that over 55% of positions are currently predicting further upside in SOL price. The metric reflects strengthening bullish sentiment and dominance among traders.
Technical Analysis
SOL has broken past its 20-day EMA at $172 and continues pushing higher. This key moving average will likely act as the first line of defense against any declines. As long as SOL holds above the 20-day EMA, the rally can extend towards the next resistance zone around $192. The RSI is also approaching overbought territory, signaling growing upside momentum. A push above $210 would confirm the start of a new bull trend.
Conclusion
The stars seem aligned for the SOL rally to continue after breaking key resistance levels and sparking a wave of network growth. The surge in new and active addresses coupled with rising on-chain transfers show the strengthening fundamentals. With technicals also turning bullish, Solana looks poised to retest its all-time highs in the coming weeks.
