Solana Sees Jump in Daily Active Addresses, Could Rise Ahead of Breakpoint Conference

Network fees are currently hovering around $595,000, similar to what was seen before the memecoin frenzy in March. Similarly, trading volume on decentralized exchanges (DEXs) on the Solana network decreased by more than 27% in August.

If network fees and DEX trading volume increase as the Breakpoint conference approaches, it is possible that the price of SOL will see a rally in the coming weeks.

Future of Solana

Historically, the SOL token tends to appreciate in the weeks leading up to the Solana Breakpoint conference. Analyst @ali_charts noted that Solana rose 35% ahead of the conference in 2021 and 2022, and 60% in 2023. This trend could repeat itself in 2024, which is why investors should be on the lookout for a potential price increase in the coming days.

Cryptocurrency industry conferences are often times when new products are revealed, which can lead to an upward movement in the market. However, there is also a risk that these events could lead to a price correction, as many investors take the opportunity to sell their positions after the news is released.

Resistance and support for the SUN

On the 4-hour chart, SOL is attempting to sustain a move above a key resistance at $136. If this move is successful, Solana could move towards $163. However, if the price fails to sustain above this level, the cryptocurrency could retreat towards the $120 support.

According to data from CoinGecko, at the time of writing, Solana is priced at $131.32, with a daily depreciation of 2.3% – in line with other cryptocurrencies on the market.

The 200-day Simple Moving Average (SMA) indicator is acting as a resistance on the upside path and may prevent further appreciation of SOL. Meanwhile, the Relative Strength Index (RSI) is above the centerline at 60, indicating bullish momentum in the short term. On the other hand, the Stochastic Oscillator (Stoch) suggests that SOL may undergo a short-term correction as the %K and %D lines have entered the overbought region.