Solana Price Faces Crash Risk Despite 8 Million New Investors

Core Insights - Solana's price is trending higher overall, but near-term risks are emerging due to the formation of an ascending wedge, which often indicates a potential pullback [1] - Despite strong investor participation and a significant increase in new addresses, existing holders are exerting more influence on price action, leading to a potential decline [4][5] Group 1: Network Activity - The number of addresses conducting transactions on Solana has surged, with over 8 million new addresses joining the network in a single day, indicating substantial demand for SOL [2][3] - This growth reflects Solana's expanding ecosystem appeal, driven by DeFi activity, memecoins, and high-throughput applications [3] Group 2: Price Action and Projections - Solana's price is currently around $144, within an ascending wedge that suggests a potential decline of 9.5%, targeting a downside near $129 [6] - Weakening momentum indicators suggest that a confirmed breakdown could push SOL towards $136 initially, with further support at the $130 level [7] - However, if investor sentiment improves and selling pressure eases, SOL could rebound from the wedge's lower trend line, with a move above $146 indicating renewed strength [8]