Solana (SOL) has emerged as a tough competitor to Ethereum. Solana, known for its high-speed transactions and low fees, has been making waves in the crypto market. However, recent trends indicate that Solana is facing resistance above the $20 mark. This development has sparked a debate among investors and traders: Will SOL price initiate a fresh decline?
Solana Continues To Display Bullish Data
As the new week commences, most of the cryptocurrency market, including Solana (SOL), has started on an upbeat note, with SOL successfully regaining a key price resistance. Moreover, recent on-chain data reveals a significant surge in the number of active Solana users.
Specifically, Dune Analytics reports that the count of unique active users in May reached 3.6 million, marking an impressive rise of 146.58% from the figures recorded in April.
Moreover, there is a positive network development as Solana has greenlit a new update, v1.14, for its validators. Following the decision by a majority of network users to transition to this new version, the cluster has now officially adopted v1.14. According to the official announcement, this version introduces several eagerly awaited features to the Solana blockchain, which will be gradually activated.
This release equips Solana developers with the ability to gather data on recently paid transaction fees, which can then be used to predict future transactions. This feature also paves the way for developers to fully leverage localized fee markets that will be incorporated in upcoming updates.
The past week witnessed a remarkable surge in the number of SOL stakers, with an increase that can only be described as exponential. According to Staking Rewards, there was an astonishing rise of over 1,800% in the number of SOL stakers within the last seven days.
What’s Next For SOL Price?
On May 27, Solana managed to break past the resistance line, and on May 28, it surpassed the 20-day EMA, hinting at a potential bullish resurgence.
The leveling off of the 20-day EMA and the RSI nearing the midpoint suggest a possible decrease in selling pressure. The 100-day EMA ($21.22) is currently posing a minor obstacle, but it’s likely to be overcome, potentially triggering a robust relief rally towards $24. As of writing, SOL price trades at $20.55, declining over 2% in the last 24 hours.
Solana price is currently tumbling near the EMA20 trend line; however, bulls are attempting to prevent further drop from the support line.
If the price dips and breaches the 20-day EMA, it would imply that bearish investors are still capitalizing on rallies. In such a scenario, the Solana price could revisit the critical short-term support level at $18.66.Â
