Over the past week, Solana has maintained a notable bullish performance, rising by more than 20% after a recent drop to the $100 support zone on April 9. While SOL has recovered its upward trend, key metrics show a major area of interest in its price dynamics for a significant number of investors.
Massive URPD Supply Cluster Amid Solana’s Price Fluctuation
Glassnode, a leading on-chain data and financial platform, has outlined a crucial shift in Solana’s price dynamics as it attempts to overcome crucial resistance areas. In the recent analysis shared on X, Glassnode points to several price zones that are vital for the altcoin’s future performance.
After delving into the UTXO Realized Price Distribution (URPD) indicator, the platform reveals that SOL has formed the largest supply cluster in recent history. This notable accumulation of investor-held SOL around a particular price point identifies a key region of interest that may serve as a crucial support or resistance zone.
According to Glassnode, SOL’s URPD shows that the cost basis has significantly changed in the last 2 days as the largest supply cluster emerges. Looking at the data, the massive supply cluster occurred at the $129.79 level, where investors accumulated more than 32 million SOL, representing 5% of the altcoin’s overall supply.
With market participants heavily concentrated in this range, Solana might be approaching a pivotal moment where the direction of the price could be determined by buyers’ or sellers’ domination of the trend. During future declines, this zone may serve as support, reflecting strong investor activity at the price level.
The second largest supply cluster is located at $144.54. At this level, investors purchased over 27.5 million SOL, which stands as a significant barrier to price upswings and could also act as robust support if the altcoin surpasses the level.
Below the $129 mark, Glassnode noted that the next support for Solana is at $117.99, where 18 million SOL, or 3% of the total supply, were acquired by investors. With $129 acting as the crucial pivot zone, $144 may serve as resistance in the short term and $117 as the bottom bound of the price range.
SOL’s Display Upside Potential To Higher Levels
Even though SOL’s price has been facing volatility, now might be the right time to purchase the dip as the altcoin gears up for an upward move. Ali Martinez, a crypto analyst and trader, predicts that Solana is poised for a strong rebound.
Martinez’s forecast is based on a TD Sequential buy signal on the weekly chart. A TD Sequential buy signal is an indication of growing momentum, which implies that the current correction could be nearing its end.
This is the second time in 1 week that the indicator has flashed a buy signal in the weekly time frame in spite of waning price performances. During the first signal, Martinez noted that SOL must maintain its position above $95 and breach $121 to set the stage for a rally to the $147 price level.
Featured image from Adobe Stock, chart from Tradingview.com
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