Solana Daily Active Addresses Hit New High, SOL Price May Follow
Solana Active Addresses Reach All-Time High | Credit: Hameem Sarwar
Key Takeaways
- Solana reached a new all-time high in daily active addresses on Sept. 9.
- The Solana (SOL) price has fallen since the yearly high in March.
- Can the SOL price follow the address lead and move toward new highs?
The Solana (SOL) price has been one of the best performers of the current market cycle. Measuring from the 2023 low to the yearly high in March 2024, SOL increased by over 2,200%. Despite a decline since then, the annual performance is still positive.
On Sept. 9, the Solana blockchain reached a new all-time high in the number of daily active addresses. This raises the question: Can the price do the same, and if yes, when will it do so?
Solana Leads On-Chain Metrics
Solana is outperforming other blockchains based on its on-chain metrics. On Sept. 9, it reached the highest-ever daily active addresses, 5.4 million. The closest competitor, Near Protocol, had 2.9 million active addresses.
A similar outlook is visible in longer-term metrics, especially in the massive transaction count lead over the past 30 days. Solana has 8.4 billion transactions, while Aptos (APT) is second with 588 million.
It also leads in monthly active users , though the lead is not as pronounced as in the transaction count. Solana is first with 49.7 million users, while Base is second at 16.3 million.
Despite this lead, Solana’s revenues are not close to their all-time highs of around $2 million in March 2024. Revenue has hovered around $250,000 since the start of September.
Interestingly, transaction counts are higher than they were in March 2024. At the time, the Solana blockchain had nearly 25 million transactions daily, while it currently has over 35 million.
So, lower transaction fees have contributed to this revenue decline and possibly also aided the increase in transaction counts.
The SOL price mirrors the revenue more closely since it has fallen since the yearly high in March and currently trades above support.
Is Solana’s Correction Over?
The weekly SOL price chart shows the decline since the yearly high is likely part of wave four in a five-wave upward movement (white) that started in December 2022. If the count is accurate, the correction ended on Aug. 5, 2024. The sub-wave count is in black, showing a completed A-B-C structure.
The structure ended at the $120 horizontal support area, which is arguably the most important horizontal level in SOL’s price history.
If the count is accurate, the most likely target for the top of the fifth wave is $170. The target is created by the 1.61 external Fibonacci retracement and by giving wave five 0.618 times the length of waves one and three combined.
If wave five extends, the next SOL price target would be $370.
Despite this positive price action and wave count, technical indicators are neutral, leaning on bearish. The Relative Strength Index (RSI) and MACD are falling and are close to their bearish thresholds at 50 and 0, respectively.
So, examining a lower time frame can help confirm whether the long-term trend is bullish or bearish.
SOL Price Creates Higher Low
The daily SOL chart gives a bullish outlook, supporting the findings from the weekly time frame.
After the Aug. 5 bounce, SOL created a higher low on Sept. 6, the first step in creating a bullish structure. This movement was also combined with a bullish divergence in the RSI.
When looking only closer at the Solana price, the movement can be considered a double-bottom pattern, often leading to bullish trend reversals.
Furthermore, the increase after Aug. 5 looks like an impulse, while the ensuing decline is an A-B-C corrective structure.
Therefore, the daily time frame gives a bullish reading, suggesting that the fifth and final wave of Solana’s upward movement has started.
Solana May Reach New All-Time High
The weekly and especially daily time frames give a bullish outlook for Solana for the rest of the year. If the wave count materializes, SOL may reach a new all-time high by the end of the year.
Solana’s Correction May Be Over — Price Action Hints at Bullish September
