Solana (SOL) has entered a phase of sideways trading after peaking at $249 on Sunday, indicating a brief pause in price movements.
Notably, on-chain data suggests that the underlying buy-side activity remains robust. Additionally, social discussions surrounding the coin are on the rise, reflecting increasing interest and engagement from the community.
SOL Consolidates, But New Buyers and Social Buzz Signal Next Rally
As reported by Glassnode, the count of unique addresses engaging in SOL transactions for the first time has surged by 16% over the past week.
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This uptick signifies an increasing wave of new demand for the coin, notwithstanding the relatively stagnant price action over the last five trading days.
An increase in new addresses serves as a bullish signal in cryptocurrency markets. When more unique wallets begin to hold or trade a token, it indicates a rising interest in the asset. Should this trend persist, it may offer underlying support for SOL’s future price increases.
Moreover, SOL’s social dominance has grown in the past week, suggesting an increase in the coin’s relevance in crypto discussions during this period. Currently, this metric stands at 4.26%.
An asset’s social dominance gauges how often it is mentioned on social media platforms, forums, and news sources compared to the wider market. A dip in social dominance indicates the asset is losing attention and engagement.
In contrast, when social dominance rises alongside price, it reflects increased retail interest and activity. This boost in visibility can enhance SOL’s short-term price momentum.
Solana Bulls Eye $248
Currently, SOL is trading at $235.21. If the underlying buying momentum strengthens, the coin could rise to test resistance at $248.50. A breakout above this level could potentially lead to a further rally towards $270.18.
However, if demand decreases and selloffs persist, SOL may drop below $219.21.
