Solana Adoption at ATH, Will Price Follow or Keep Dropping?

Despite ongoing market uncertainty, Solana (SOL), the world’s fifth-largest cryptocurrency by market cap, is gaining significant attention from the crypto community. Recently, a prominent crypto expert posted on X (formerly Twitter) that the total number of Solana addresses has reached a new all-time high of 2.07 billion.

Solana’s Record Adoption

A high number of addresses doesn’t necessarily mean high daily transactions or engagement. This substantial rise in Solana addresses shows how the community is adopting Solana-based dApps, NFTs, and DeFi projects. However, many addresses could be created by bots or airdrop farming rather than real users.

Current Price Momentum

Despite rapid adoption, the price of SOL remains in a downtrend due to market uncertainty. The asset is currently trading near $141 and has experienced a 5% price drop in the past 24 hours. During the same period, its trading volume jumped by 15%, indicating heightened participation from traders and investors compared to the previous day.

However, the inclusion of SOL in the Crypto Strategic Reserve might be a key reason behind the growing attention from traders and investors. Additionally, Solana’s superior blockchain technology is another factor driving its rapid adoption.

Solana (SOL) Price Action and Upcoming Levels

According to expert technical analysis, SOL is still in a downtrend and struggling to recover due to current market conditions. It is currently trading below the 200 Exponential Moving Average (EMA) on the daily timeframe. Despite the downturn, the asset is near a crucial support level of $130 and appears to be consolidating within a tight range.

Based on recent price action and historical patterns, if SOL begins to rally and closes a daily candle above the $150 level, it could surge by 22% to reach $185 in the coming days.

In addition to all this, investors and long-term holders are actively accumulating the token, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of over $42 million worth of SOL tokens in the past 24 hours.

This substantial outflow suggests potential accumulation, which could create buying pressure and fuel a further upside rally.