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Solana Active Wallets Tip 1 Million Potentially Sparking Bull Phase for SOL

Last Updated 6 days ago
Nikola Lazic
Last Updated 6 days ago

Key Takeaways

  • Solana’s price failed to establish a strong uptrend.
  • On-chain data shows increased network engagement.
  • Active wallet growth may boost SOL’s price.

The price of Solana started trending upward on May 1, but it still hasn’t shown an undeniable uptrend. With its price still trading lower than its yearly high of $210, we could interpret this as a sign of the company’s struggle to maintain its upward momentum. 

However, some on-chain data suggests network growth, which may positively impact Solana’s price. 

Solana On-chain Data

The number of active wallets on the Solana network has risen sharply from a low of 700,000 to slightly over 1 million, indicating a surge in user engagement and network activity. 

This growth began in mid-May and accelerated in early June, reaching around 1.1 million by June 5, according to SolScan  data. 

The increase in active wallets reflects a robust and expanding ecosystem, with more users transacting and interacting with decentralized applications (dApps) and smart contracts. This trend could enhance investor confidence and elevate the price of SOL, which remains trading at around $170. 

The number of active wallets peaked at 2 million on March 17 and fell to a low of 701,000 on April 28. It started trending upward and finally crossed 1 million again in June. 

 

Solana
Active wallets | Source: SolScan

 

 

In this case, the active wallets are those that signed a transaction at least once within the observed period.

This is also the case with the number of new addresses created on the Solana blockchain. From its peak of 1.25 million on March 22, it fell to a low of 770,000 on May 2. An uptrend started, and this value is now shy of 1 million. 

Solana
Number of new addresses | Souce: The Block

This shows the fundamental interest in this blockchain is considered an indicator of the network growth. 

SOL Price Analysis 

On March 18, SOL‘s price peaked at $210 but declined to $120 by May 1, representing a 43% decrease. However, by May 21, it had nearly returned to $190, surpassing a significant resistance level that had previously served as support.

SOL
SOLUSD | Credit: Nikola Lazic/Tradingview

After breaking this resistance, SOL indicated the potential for gains, but a subsequent dip saw the prices fall below this level again. The downturn that started on May 1 now points to a possible forthcoming decline, highlighted by the identification of three waves.

As suggested by the price chart analysis, there are two scenarios ahead. From May 1, we saw another rise, bringing the price of SOL to $190 on May 21. If this ends at a lower high, we could see another downturn and lower values than May 1. 

A bounce is possible as the price now retests its ascending support at $170. In this case, the price of Solana could increase and proceed to a new all-time high. If this happens, SOL could be looking at a value above $350 for its next target to the upside. 

How the interaction with its ascending support ends will dictate the future outlook is why we need to see either a breakout to the downside or a bounce leading to upward momentum. 

 

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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