Solana loiters dangerously close to a critical support level as the volume of active traders falls drastically. However, institutional integrations present an alternative perspective.
Solana, aka Ethereum, is closing in on the 200-week moving average as active traders’ volume dropped drastically. The number of active traders on the Solana blockchain dropped from as high as 4.8 million to approximately 680K, a drop by 7x, making the token shed 50% of its value during the past 12 months.
As Solana comes menacingly close to this level, the bulls should step in and stop the crash that the coin has been experiencing for quite some time. From recording prices as high as $250 in January 2025, the coin is now staying barely above the 3-digit value. One slip below this 200-week support level will see the coin crashing below $100, a psychological support level.
The above chart shows that the MACD technical indicator is about to change its direction. The MACD line was heading deep into negative territory, showing the presence of bears. But now the histogram of the MACD shows lighter and smaller red bars, showing the waning strength of the bears.
Although the active trader volume plummeted, institutions have been favoring Solana. For instance, exchanges like Coinbase, MetaMask Wallet, and JP Morgan partnered with Solana. So this indicates that the institutional interest is increasing despite the active traders’ volume plummeting.
With so many entities joining Solana, a rally is imminent for the ETH killer. Even on the technical side, the chart below shows a bullish RSI divergence.
When the RSI line makes higher highs, the coin tends to make lower highs. This event usually happens just before the coin is about to change its direction. As such, Solana will defend the 200-week MA and rebound higher.
