Onchain activity on Solana has been impressive in the recent past, but prices have not reflected this growth. As such, SOL faced rejection at $76, which also happens to be the 50-day moving average.
SOL stalls at $76 as traders take quick profits
Solana (SOL) has hit resistance at the 50-day moving average, which happens to be the $76 level. After bottoming at nearly $60, SOL gained some momentum, with bulls predominantly pushing prices higher and establishing higher lows. However, with the 50-day moving average acting as resistance, there was yet another sell-off, which is typical behavior when the price approaches a major level.
Solana’s on-chain activity hits record highs: 1,200 TPS
What’s more discouraging about the resistance is that, despite the on-chain activity showing impressive numbers, SOL has stalled. From hitting 1,200 TPS and averaging 100M daily transactions to 4.3M unique daily users and over $100M in transaction fees year to date, the network achieved great success, but without price action.
Solana continues making lower lows as bear strength weakens
When the weekly chart is considered, it could be seen that Solana is still maintaining the structure—a downward channel, which looks like the market is quite bearish. However, the relative strength index, which gauges the strength of the market, indicates otherwise.
When the RSI coinciding with the crash of the price is considered, it has been making lower highs and lower lows along with the price. However, now the RSI turned around after nearly crossing over tothe oversold region. With the price at the bottom of the trendline, it makes a very good accumulation spot for whales and even retailers.
However, the uptrend needs to be confirmed first. According to analyst Ardi, the 21-week moving average could be the biggest signal that could indicate that the uptrend has begun.
