- Solana NFT and Defi experienced a jump where Solana’s NFT index moved 0.23% and the wallet activity was near about 4 million users.
- Over $105 million and $120 million worth of whale transactions were carried from Ethereum.
- Support and resistance levels at $129 and $144 prices will likely determine Solana’s price trend.
Solana’s NFT and Defi ecosystem witnessed considerable volumes in the last week, indicating fresh engagement in the Solana network. Forkast SOL NFT Composite Index increased by 0.23%, reaching 507.35 in seven days.
This was after dropping to a low of 502.47 on April 9, followed by appreciation on April 11, showing that trading and minting had increased. The surge will be attributed to engagements by multiple projects on the Solana network from retail investors and institutional players seeking to work on a network with faster throughput. A high trading volume has contributed to creating more liquidity and visibility of NFT collections, which has had a stabilizing effect on their price.
Wallet Activity Climbs as Users Return
User engagement metrics revealed that in the Solana network, the number of active wallets, which declined at the beginning of the week, is gradually recovering. Active wallets reached about 5.4 million on April 10, but the 7-day average of this reached 3.96 million. This was after it dipped slightly to slightly above 3 million wallets, as indicated by the stats captured on April 7.
The increase in wallet activity indicates a progressive shift towards using Solana’s NFTs and DeFi applications. An increase in the wallet activity usually raises transaction volume’, meaning improved liquidity is promoted within the blockchain. While active wallets are still lower than the 9 million attained previously, the upward trend indicates that more users want to transact at lower costs and in less time.
A massive whale transfer contributed to increasing discussions within the Solana community. Whale Alert noted the transfer of 790,427 SOL tokens, which is equivalent to over $105 million, in two anonymous wallets. The size and nature of the transfer gave rise to debates on potential institutional participation or redeployment of assets.
Also, over $120 million has been transferred to Solana from other blockchains in the past week. Ethereum contributed more than $70 million to the transfers, revealing users’ shift towards the Solana network due to its lower costs and speed. The SOL/ETH ratio also rose to the highest level in recent trading sessions, indicating that Solana outperformed Ethereum.
Key Price Levels Shape Market Outlook
On-chain data provided by Glassnode explained key support and resistance levels for investors in Solana. The UTXO Realized Price Distribution (URPD) analysis revealed that more than 32 million SOL tokens were moved at the $129.79 price level. This level can be considered the most oversold and might offer stiff support during any correction.
The level of support has been found to be at around $ 117.99, with approximately 18 million SOL being traded in this price range. A movement toward this zone could deter investor interest and may cause more pressured selling.
On the flip side, $144 has appeared as a significant level of resistance, with as much as 4.76% of the circulating supply of Solana traded at this price range. This level is expected to provide some selling pressure, creating a barrier to the continuing upward movements in prices, according to market participants.
