Solana’s Remarkable Surge: A Comprehensive Analysis
In recent developments, Solana has exhibited a significant bullish trend, experiencing an impressive increase of over 20% after dipping to the $100 support level on April 9. While Solana (SOL) has resumed its upward trajectory, various key indicators highlight areas of substantial interest in its price movement for many investors.
Understanding Solana’s URPD Supply Cluster Amid Price Fluctuations
Glassnode, a prominent on-chain data and financial analytics platform, has identified a significant transformation in Solana’s price dynamics as it strives to overcome critical resistance levels. In a recent analysis shared via X, Glassnode highlights several price zones essential to the altcoin’s future trajectory.
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Upon examining the UTXO Realized Price Distribution (URPD) indicator, Glassnode reveals that SOL has established the largest supply cluster in recent history. This substantial investor-held SOL accumulation around a specific price point signifies a crucial region of interest that may act as a significant support or resistance zone.
According to Glassnode, the URPD for SOL indicates a notable shift in the cost basis over the past two days, coinciding with the emergence of the largest supply cluster. Data shows that this significant cluster formed at the $129.79 level, where investors amassed over 32 million SOL, constituting 5% of the altcoin’s total supply.
With market participants heavily concentrated in this range, Solana could be nearing a critical juncture where the price direction may hinge on whether buyers or sellers dominate the trend. In future downturns, this zone might serve as a support level, reflecting substantial investor activity at this price.
The second-largest supply cluster is located at $144.54, where investors acquired over 27.5 million SOL. This level stands as a formidable barrier to price ascension and could also act as strong support if the altcoin surpasses it. Below the $129 mark, Glassnode identifies the next support for Solana at $117.99, where 18 million SOL, or 3% of the total supply, were purchased by investors. With $129 as the pivotal zone, $144 may serve as short-term resistance, while $117 could represent the lower boundary of the price range.
Potential Upside Movement for Solana
Despite experiencing volatility, the current period might present an opportune moment to invest in Solana as the altcoin prepares for an upward move. Ali Martinez, a crypto analyst and trader, forecasts a strong rebound for Solana based on a TD Sequential buy signal on the weekly chart. This buy signal suggests increasing momentum, indicating that the current correction could be approaching its conclusion.
This marks the second instance in a week where the indicator has signaled a buy on the weekly timeframe, despite recent price fluctuations. During the first signal, Martinez emphasized that SOL must sustain a position above $95 and breach $121 to pave the way for a rally towards the $147 price level.
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