- Solana network records highest one-day increase in active addresses.
- SOL is traditionally raised before the Solana Breakpoint conference.
- SOL could rise to $163 if it holds above the key resistance at $136 for a long time.
Solana (SOL) rose 0.5% on Tuesday after a significant increase in the number of active addresses on the network during the day. Investors are eyeing a potential rally as the Solana Breakpoint conference approaches.
SOL needs other key metrics to catch up with fuel price rises before break point
Ten days before the annual Solana Breakpoint conference, the Solana network is experiencing increased network activity. According to Artemis data, Solana recorded its highest single-day daily active address (DAA) growth on Tuesday after adding more than 5.4 million new addresses.
Daily Active SOL Addresses and Daily Transactions
Solana’s daily transaction volume is also on the rise, increasing 22% to 40.3 million between September 8 and 9. This steady growth could help Solana’s network fees recover from the downward trend seen since August.
Network fees are currently around $595,000, a level last seen before the meme coin craze in March. A similar trend can be seen in trading volume on the Solana decentralized exchange (DEX), which has fallen more than 27% in August.
If Solana network fees and DEX trading volume increase as the Breakpoint conference approaches, this could trigger a rally in SOL in the coming weeks. Solana Breakpoint will be held from September 20-21, 2024.
SOL DEX Trading Volume and Network Fees
According to analyst @ali_charts, SOL has historically risen in price in the two weeks leading up to the Solana Breakpoint conference. He noted that SOL has risen 35% in 2021 and 2022 and 60% in 2023 leading up to the conference. As a result, it is critical for investors to keep an eye on potential price gains in the coming days.
During these conferences, projects tend to introduce their products, which can lead to a bullish spark. Therefore, it may also be useful to pay close attention to the tokens in the Solana ecosystem.
On the other hand, industry events are often seen as an excuse to sell news, leading to potential price declines in key projects.
SOL may rise above key resistance
On the 4-hour chart, SOL is struggling to sustain a move above the key rectangle resistance near $136. A sustained move above this level could see SOL rally to $163. However, failure to actively trade above $136 could see SOL decline to the $120 support level.
SOL/USDT 4-hour chart
The 200-day simple moving average (SMA) is acting as resistance on the way up and may prevent further gains in SOL. The Relative Strength Index (RSI) is above its midline at 60, indicating growing bullish momentum. The %K and %D lines of the Stochastic Oscillator (Stoch) have crossed into oversold territory, meaning a short-term correction may be imminent.
In the short term, SOL could fall to $132, resulting in the liquidation of positions worth $16.02 million.
