Will SOL’s price be affected as Solana hits record daily active addresses?

• Solana’s record active addresses signaled strong network growth, with transaction volumes surging alongside adoption.
• Whale accumulation and increased staking indicate long-term confidence, despite some short-term profit-taking. 

Solana [SOL] recently set a new record with over 5.4 million daily active addresses, sparking conversations about a potential price rally for the native token.

This surge in network activity has raised questions about whether the on-chain growth and technical factors could signal bullish momentum.

At the time of press, SOL was trading at $131.36, down 2.63% over the last 24 hours. Solana’s market cap stood at $61 billion, making it the fifth-largest cryptocurrency by market capitalization. 

The token’s trading volume has seen significant fluctuations, driven in part by recent whale activity.

Despite some short-term bearish sentiment, the overall strength of Solana’s network and the massive rise in active users highlight its growing prominence in the blockchain space.

Technical indicators signal breakout rally?

From a technical standpoint, Solana faced resistance at $140, which could act as a crucial price level for bulls to break if a rally is to occur.

The $125 support level has consistently provided a safety net for the token, reducing the likelihood of further declines in the near term. 

The 200-day moving average (MA) was hovering around $135 at press time, a key indicator of long-term price trends.

Meanwhile, Solana’s RSI (Relative Strength Index) was at 34.53, indicating that the token was nearing oversold territory, often a sign of a potential rebound.

Source: TradingView

The key to Solana’s on-chain surge

Solana’s daily active addresses have surged to a record 5.4 million, showcasing increased user adoption. Such growth often correlates with increased demand for the token, which could translate into upward price pressure. 

Source: Artemis

Furthermore, Solana’s transaction volume has spiked significantly, with a 41% increase in the past 24 hours, reflecting heightened market interest and trading activity.

However, despite Solana’s record-breaking active addresses and rising transaction volume, mixed whale activity raised caution.

While some whales were accumulating and staking at press time, others were taking profits, indicating short-term uncertainty. 

Is this a bullish sign for SOL?

The increase in daily active addresses, combined with rising transaction volumes and notable whale accumulation, pointed to a bullish outlook for Solana.

Historically, such on-chain growth often precedes price rallies, and the oversold RSI supports the case for a potential upward move. 

Read Solana’s [SOL] Price Prediction 2024–2025

However, for Solana to experience a sustained price rally, it needs to break through the critical $140 resistance level.

Given the increasing staking activity and overall network health, there are strong indicators that Solana could see upward momentum if key technical levels are breached.