Solana Faces Bearish Pressure Despite Bullish On-Chain Metrics: What’s Next for SOL’s Price?

In recent weeks, Solana (SOL) has gained considerable attention as its price faces extreme volatility due to the recent CPI news. This follows Bitcoin’s recent challenge in maintaining a clear trend above the psychological threshold of $70K. Amid a bearish pressure, Solana has experienced shifts in key on-chain metrics, suggesting the potential for a significant rebound in the coming hours.

SOL’s New Addresses Surged By 7%

Currently, the market sees a struggle between buyers and sellers trying to set a clear price trend for Solana (SOL). Currently, sellers are in control as the SOL price declines steeply below the $150 mark. This has triggered a massive surge in long-liquidation among buyers.

According to recent data from Coinglass, Solana has seen total liquidations reaching nearly $8.3 million. Buyers have experienced about $7.5 million in liquidations, while sellers have faced around $821K.  

IntoTheBlock data indicates that Solana observed a noteworthy surge in new addresses within the last three days. The numbers depict a significant uptick, rising from 993,000 to a fresh peak of 1.06 million, recording around 7% gain. 

The massive surge in interest in the Solana network has led to an increase in trading volume, further strengthening the momentum. According to DappRadar data, there has been a 62% surge in transaction volume on the Solana chain within the past 24 hours, with over 8.84 million transactions executed during this timeframe.

Interestingly, Solana is doing exceptionally well in terms of processing transactions compared to other blockchain networks. In the past week, Solana has processed more transactions than any other blockchain, totaling over 59.55 million.

The growing popularity of SOL can be attributed, in part, to the meme coin ecosystem flourishing on the network. Traders are flocking to Solana to capitalize on meme coins, which have been the most profitable crypto assets in this recent period of market growth.

What’s Next For SOL Price?

Solana dipped below the 50-day SMA ($160), strengthening the ongoing bearish momentum. Bears are currently dominating the price chart as the SOL price triggers intense bearish momentum below the $150 mark. As of writing, SOL price trades at $148, declining over 5.4% in the last 24 hours. 

SOL price is currently heading toward testing buyers’ patience at the $140 level. Bulls are expected to push the price above that support line. A successful rebound would indicate the end of the recent corrective phase. The SOL/USDT pair could target $176 initially, with potential further gains towards the overhead resistance at $192.

However, a bearish scenario would unfold if the price fails to climb above the 20-day EMA ($169) or defend the $140 support line. This could pave the way for a decline towards $120.

As the RSI trend line is falling steeply toward the oversold region of 39, sellers are gaining increased confidence to defend any immediate surges on the price chart.