Solana was in the news after its active addresses rose significantly to 4.7 million over the past week. The rise in user interactions across the Solana network could translate into greater demand and ultimately increase investor confidence in the market.
However, will other technical and technical developments help sustain the improved market activity?
On the daily chart, Solana appears to be approaching a major turning point at press time.
Price action has struggled for weeks below key resistance levels since it bounced from the $59 trading price. However, the token recently tested key Exponential Moving Average (EMA) resistance at $75.
A successful move above this level could represent a shift in market structure and strengthen the case for a broader recovery. Here, timing is also important. Especially since tThe improved fundamentals of the altcoin can add to and accelerate improved network activity.
Are shareholders competing in the long term?
The accumulation of tokens on the network has also been on the rise. In fact, stockholder balances increased as a result of further investments made on the platform in this period of consolidation.
However, there has been a reduction in supply as well – meaning there are fewer tokens being put back into circulation.
Divergence can cause demand to spike as there are not enough tokens available to trade. As a result, the price of the token may rise in the near future.
Is it undervalued?
Fundamental metrics seem to tell a similar story. At the time of writing, Solana The price-to-sales ratio was around 2 – a level that indicates the token may be undervalued at its trading price.
While valuation metrics are rarely used as short-term trading signals, they can provide useful context when assessing whether an asset has become overextended or remains relatively undervalued.
For some investors, the current ratio may reinforce the case for continued accumulation, which will turn into another positive gain for SOL.
Can buyers get past the next hurdle?
The market now faces a clear test. A decisive move above EMA resistance near $75 would reinforce the bullish structure that has developed over recent sessions.
After this level, the next major area of interest is around the $83 level, where previous selling pressure emerged.
At the time of writing, the altcoin’s price movement was keeping pace with its fundamentals. Especially as network activity is growing and bondholders continue to accumulate on the back of supportive valuation metrics. They all seemed to support the expected breakout.
Final summary
- Active Solana addresses rose to 4.7 million, indicating renewed activity across the network.
- Holder accumulation and a P/E ratio of 2 appear to support SOL’s attempts to reclaim the key $75 resistance level.
