Solana Price Faces Crash Risk Amid Mixed On-Chain Activity and Exchange Position Changes

• Solana (SOL) has formed an ascending wedge pattern since the start of the month,
  often indicating a potential price pullback
  .
• On-chain data shows strong network growth,
  with over 8 million new addresses joining the network
  in a 24-hour period.
• Exchange position change data suggests that
  long-term holders are exerting stronger influence
  , reducing buying pressure and increasing the probability of a breakdown.

The

price is currently trading near $144 and is forming an ascending wedge pattern, to $129 if the structure resolves lower. This pattern is in price.

On-chain activity for Solana has been robust,

the network in a 24-hour period. This surge in on-chain activity reflects strong investor participation and growing demand for . The growth is attributed to attracting new participants.

However, exchange position change data indicates

to existing holders. Long-term participants have weakened in their buying pressure, which is now being offset by . This shift suggests that selling pressure may dominate, from the current wedge pattern.

What Drives the Current Price Volatility?

The current volatility in Solana's price is driven by the interplay between on-chain activity and exchange position changes. While the surge in new addresses indicates strong demand,

introduces uncertainty. This dynamic creates a scenario where , leading to price weakness.

Technical indicators also play a role in assessing the potential for a price correction.

could lead to a potential 9.5% decline to $129. If the price breaks down from the wedge, it would likely , with further support at $130.

What Does the On-Chain Data Indicate About Solana’s Future?

On-chain data provides a mixed picture of Solana's future. While the network has seen significant growth in active addresses,

. This decline suggests that adoption may be slowing, which could impact the network's ability to sustain price momentum.

The Network Growth metric measures the weekly total number of addresses coming online on the blockchain for the first time.

, which is typically a sign of a healthy market. Conversely, , which can be a sign of potential challenges in sustaining price momentum.

How Is Institutional Interest Affecting the Market?

Institutional interest in Solana is on the rise,

into Solana-linked exchange-traded funds. The assets in these ETFs have climbed to $1.2 billion, in Solana. This increased institutional backing could potentially for the altcoin.

The growth in institutional interest is supported by technical indicators,

. This surge in demand supports heading into the next phase of the market. However, it is important to note that while institutional confidence is high, of on-chain activity and exchange position changes.