Solana is experiencing a noteworthy rise in participation, with over 10 million new wallets joining the network recently. This increase in activity signals a growing adoption and an influx of fresh capital into the ecosystem. Currently, the total new addresses on Solana average about 10.2 million daily, each representing wallets that have made their first transaction. Such growth often accompanies price recoveries, as new participants typically absorb supply from short-term sellers. This trend has historically been a precursor to rebounds in Solana’s price cycles, suggesting that an increase in holders could provide stability for SOL in the long term.
As of now, SOL is trading near $115, navigating key technical levels that could lead to either a breakout or continued consolidation. The token is currently situated within a descending broadening wedge, a pattern generally seen as bullish. Maintaining support above $115 is critical, as it helps sustain the potential for upward movement. For a breakout to occur, SOL would need to bounce from the lower trend line and overcome the resistance at $123. If this level is surpassed, price targets could extend towards $132 and $136, aligning with previous resistance zones and technical projections.
However, macro momentum presents a mixed outlook. Notably, flows from spot Solana ETFs turned negative for the first time in almost two weeks, with reported outflows of $2.2 million. This shift reflects emerging skepticism among ETF investors, who are typically more strategic in their decisions. A reduction in ETF demand could hinder upside momentum and create headwinds for SOL price until these flows either stabilize or reverse.
Overall, while Solana faces some obstacles, the substantial growth in new wallets and participation within the network highlights the potential for a bright future, provided that current levels of support are maintained and positive market sentiment returns.