Solana (SOL) has been on a roll lately, jumping over 20% after hitting a low of around $100 on April 9th. But what’s really interesting is what’s happening under the hood.
Analyzing Solana’s Price Clusters
Data analysts at Glassnode have been looking at Solana’s price action using something called the UTXO Realized Price Distribution (URPD). What they found is a huge cluster of SOL tokens held around a specific price – the biggest ever seen! This means a lot of investors bought at around the same price.
This massive cluster sits at $129.79, with over 32 million SOL (5% of the total supply) concentrated there. This price point is likely to be a major support level – meaning if the price drops, it might bounce off this level due to all those investors who bought in there.
There are other significant clusters too:
- $144.54: Another big cluster (27.5 million SOL), which could act as resistance (preventing further price increases) or support (preventing further price decreases) depending on whether the price is approaching it from above or below.
- $117.99: A smaller cluster (18 million SOL), representing a potential lower support level.
So, the key price range to watch is roughly between $117 and $144, with $129 being the crucial pivot point.
Is Now the Time to Buy?
Crypto analyst Ali Martinez thinks so. He’s seeing a “buy” signal on the weekly chart using a technical indicator called TD Sequential. This suggests the recent price drop might be ending, and a rally is on the way. He previously predicted a rally to $147 if SOL could stay above $95 and break through $121 – and it looks like it’s heading that way.