- Solana formed a bullish Cup and Handle, setting the stage for a potential rally beyond $300.
- Active Addresses and Transaction Count surged, pushing Solana ahead of competing blockchains in network activity.
Solana [SOL] has become a point of attraction for investors in the market, prompting them to purchase the asset that drove its price up by 8.74% in the past 24 hours.
Market analysis of SOL’s price action and on-chain activities suggests that the asset is ready to take a major step up in the coming trading sessions.
A major price swing ahead for SOL?
SOL appears to be in a preparatory phase to make a major price swing, potentially forming a new all-time high.
The altcoin was trading within a cup and handle pattern—a technical formation that typically precedes a rally.
Source: TradingView
However, to rally to this level, SOL must first breach the current resistance line at the handle, which has formed around the $170 region. Following that, Solana will need to break past its all-time high of $294.33.
If the altcoin clears both levels, it will likely push toward key near-term milestones at $300, $400, $500, and beyond.
AMCrypto has identified activities likely to put SOL on this trajectory and help it reach its target level.
On-chain activity suggests high interest in SOL
According to a report from Nansen, Solana led all major chains in activity this week. The network saw 21.75 million Active Addresses.
Source: Nansen
These Active Addresses interacting with the Solana blockchain have collectively conducted a total of 415 million transactions within the same period.
If this activity continues along this path, it signals increasing usage of SOL, which would further fuel its ongoing rally.
Derivative market making a push
Momentum was equally visible in derivatives.
In the past four hours, buying volume overtook selling, with a Long/Short Ratio of 1.0525. It implies that the market is currently dominated by buyers.
Source: CoinGlass
This has also coincided with an increase in position size on SOL across both the futures and options markets. At the same time, Open Interest climbed to $5.2 million in options and $6.19 billion in Futures.
Interestingly, this growth was followed by a volume surge of 548.89% to $2.26 million in options and 75.65% to $19.04 billion in Futures.
The increase in volume, Open Interest, and price implies that the current buying activity for SOL is sustainable and could extend the asset’s rally toward its near-term target.
