Solana’s Network Activity Soars 56% – Could the $147 Price Point Be Next for SOL?

Solana’s recent on-chain performance indicates a significant rebound, highlighting a resurgence in demand.

Key Takeaways

Active Addresses: Increased by 56% week-over-week to 27.1 million.
Weekly Transactions: Rose to 515 million, suggesting strong network usage.
Price Movement: SOL has shown signs of recovery, reclaiming the $135.5–$147.1 price range.
Momentum Indicators: Positive shift in MACD suggests improving bullish sentiment.
Trader Sentiment: Long positions dominate as confidence returns among traders.
Liquidity Dynamics: Significant upside liquidity identified above the current price, indicating potential for momentum.

Solana [SOL]

Renewed Demand on Solana Network

The on-chain metrics for the Solana network have seen a notable increase, indicating a growing interest in the cryptocurrency. Active addresses on Solana surged by 56% over the past week, reaching 27.1 million. In tandem, weekly transactions jumped to 515 million, highlighting sustained network activity. This level of engagement is crucial, as price strength typically follows ongoing network usage.

However, it’s important to note that increased activity alone often doesn’t guarantee price rallies. Currently, this growth aligns with price stabilization in the $119.8–$135.5 range, providing a solid foundation for recovery.

Additionally, the increase in transaction volume indicates a movement of capital into Solana’s [SOL] ecosystem. To maintain this upward trend, it is essential that activity levels stay elevated. A decline below recent averages could diminish market confidence, but for now, the usage metrics support a bullish outlook, suggesting that buyers have regained control beneath current price levels.

Solana price action
Source: TradingView

Breaking the Downtrend

Recent price movements indicate a significant shift in SOL as it breaks away from a prolonged downtrend. Buyers successfully defended the $119.8 support level, leading to a breakout above the descending resistance line. This movement has reclaimed the $135.5–$147.1 price area, effectively converting it into support—something previous rallies struggled to achieve.

As a result, there is reduced downside pressure, with prices hovering around $142 while maintaining higher lows. This price structure supports further upward momentum, as long as the $135.5 level holds. Should the price fail to defend this area, there may be renewed risks towards $119.8.

Overall, the current price structure indicates a transition from a correction phase to a recovery phase, which may lead to additional upward attempts.

Confidence Among Traders Grows

Data from derivatives markets reveal that traders are increasingly positioning themselves for long trades. At Binance, top traders hold a 76% long exposure, leaving short positions at just 24%, leading to a Long/Short Ratio of 3.17. This reflects a growing belief in a bullish trend without excessive crowding, as overleveraged conditions typically arise when the ratio exceeds 4.0.

At present, the conditions appear balanced. The long positions are a response to the recent breakout rather than speculative anticipation, suggesting that derivatives flows align with the prevailing market structure. However, traders must remain cautious, as a decline below the $135.5 support level could lead to a swift unwinding of long positions.

Source: CoinGlass

Exploring Liquidity Dynamics

The Hyperliquid Liquidation Map indicates that there is substantial short-side liquidity positioned above the current price, notably around $153, $201, and potentially extending towards $300. Conversely, cumulative long liquidations below $135 are relatively sparse.

This disparity signifies a lower risk of a downside cascade while simultaneously creating potential for upward movement. If the price rises, forced liquidations of short positions could enhance momentum. Nevertheless, liquidity is contingent on price movements.

In this scenario, the structural and momentum indicators align with the incentives created by liquidations. As long as current dynamics persist, there is a favorable environment for continued upward movement. A failure to advance, however, may lead to a phase of consolidation.

Source: CoinGlass

In conclusion, Solana’s recent rebound demonstrates a tangible demand rather than mere speculative hype. The rising network activity, confirmed breakout from a trendline, strengthening momentum indicators, and long-oriented positioning all point toward favorable conditions for upward movement. As long as SOL stays above the $135.5 support area, the short liquidity overhead presents an opportunity for further gains. However, any failure to maintain this level might lead to a halt in momentum and potential consolidation before further advances can occur.

Final Thoughts