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The Solana price was one of the few highlights in a generally choppy crypto market over the past week. While most large-cap assets were stuck in a consolidation range in the last seven-day period, the SOL token enjoyed a good amount of upward bullish momentum.
The price of SOL kicked off the weekend with a strong rally toward the $140 level, albeit facing some degree of resistance around this level. However, the latest on-chain data suggests that the Solana price might have become wedged between two crucial levels.
Is SOL Price Gearing For A Breakout Or Breakdown?
In a recent post on the X platform, prominent crypto analyst Ali Martinez shared an on-chain insight into the current Solana price setup and its potential future trajectory. The online pundit referenced the “UTXO Realized Price Distribution” (URPD) indicator, which monitors the amount of a particular cryptocurrency that was acquired at a given level.
Usually, the ability of a price level to serve as an on-chain support or resistance zone depends on the number of investors (and coins) with their cost basis around this level. The cost basis of an investor refers to the spot price at which they acquired their tokens or coins.
Typically, a price region (beneath the current price) where several investors bought their tokens will likely act as a support level. This is because investors are likely to double down on their position when an asset’s value falls to their cost basis; this buying activity helps keep the token’s price afloat.
On the other hand, price levels above the current price with significant buying activity would serve as major supply or resistance barriers. The rationale behind this is that investors tend to sell off their assets when the token’s price rises back to their cost basis, putting downward pressure on price and preventing further upward growth.
The chart below shows the distribution of token supply at different Solana price levels surrounding the current price.
According to data from Glassnode, the most important support for the Solana price lies around $129, while the major resistance sits at around $144. As Martinez explained, a breakout (above $144) or breakdown (below $129) could determine the fate of the SOL token over the next few weeks.
As observed in the highlighted chart, the next significant support for the Solana price sits around the $10 level. Meanwhile, there is no significant resistance for the altcoin till around the $170 price level based on the URPD indicator.
Solana Price At A Glance
As of this writing, the SOL token is valued at around $138, reflecting an over 3% price increase in the past 24 hours.
Featured image from Jakub Porzycki/Getty Images, chart from TradingView
Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.
Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.
Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.
When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.
Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.
Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.
Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.
Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.
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