Solana (SOL) Breaks $17K Mark as On-Chain Metrics Improve
• Solana (SOL) has seen a steady increase in value over the past 10 days, climbing past the $17k mark.
• On-chain metrics have improved, with active wallet count and development activity both increasing.
• The shift from bearish to bullish in the lower timeframe structure and rising On-Balance Volume (OBV) indicate genuine demand for the asset.
Solana (SOL) has been on a bullish run for the last 10 days, with its value climbing past the $17k mark. This surge was preceded by a drop to $16.4k, which was followed by a steady march upwards. The recent surge past $17k was met with enthusiasm by traders, as it represented a break from the bearish trend that had been in place for several weeks.
On-chain metrics have also seen an improvement, with the active wallet count going up by a substantial margin and development activity also seeing an uptick. This indicates that there is genuine demand for Solana, which is further confirmed by the rising On-Balance Volume (OBV). The OBV is an indicator of genuine demand for an asset, and its steady rise over the past 10 days is indicative of investors’ confidence in the project.
The recent surge also shifted Solana’s lower timeframe structure from bearish to bullish when it jumped past the resistance at $11.85 on 3 January. This move was met with enthusiasm by traders, as it represented a break from the bearish trend that had been in place for several weeks. The surge past $14 saw SOL gain close to 32% within a day, which is a sign of the strong bullish momentum that is currently driving the market.
However, despite the impressive gains, there is still a lack of capital flowing into the market as per Open Interest, which could give bulls a pause. This means that whether or not the current bullish momentum will be enough to initiate a higher timeframe recovery remains to be seen. Nevertheless, the recent move past $17k and the improving on-chain metrics indicate that the project has potential for strong growth in the near future.