All about Solana’s 4.7M milestone and SOL’s attempt to clear $75-level

Solana is in the news after its active addresses surged significantly to 4.7 million over the past week. The hike in user interactions across the Solana network could translate into greater demand and eventually feed into investors’ market confidence.

However, will other on-chain and technical developments help sustain the improving market activity?

On the daily chart, Solana seemeed to be approaching a key turning point at press time.

Its price action struggled for weeks below key resistance levels since it bounced back from its trading price of $59. Lately though, the token has been testing a major Exponential Moving Average(EMA) resistance at $75.

A successful move above that level could mark a shift in market structure and strengthen the case for a broader recovery. Here, the timing matters too. Especially since the altcoin’s improving fundamentals could add to and accelerate its improving network activity.

Are long-term holders playing along?

Accumulation of tokens on the network has been on the surge as well. In fact, holder balances have increased as a result of more investments being made on the platform in this period of consolidation.

However, there has been a drop in the supply too – Meaning that there are fewer tokens being returned to circulation.

The divergence could cause a demand shoot as not enough tokens may be available for circulation. As a result, the token’s price could push higher in the near future.

Is it undervalued?

Fundamental metrics seemed to be relaying a similar story. At the time of writing, Solana’s Price-to-Sales ratio was around 2 – A level that suggested the token may be undervalued at its trading price.

While valuation metrics are rarely used as short-term trading signals, they can provide useful context when assessing whether an asset is becoming stretched or remains relatively undervalued.

For some investors, the current ratio may strengthen the case for ongoing accumulation, which will turn out as another positive gain for SOL.

Can buyers clear the next hurdle?

The market now faces a clear test. A decisive move above the EMA resistance near $75 would strengthen the bullish structure that has been developing over recent sessions.

Beyond that level, the next major area of interest sits around $83, where previous selling pressure emerged.

At press time, the altcoin’s price action was catching up with its fundamentals. Especially since network activity has been growing and holders have continued to accumulate on the back of supportive valuation metrics. Together, they all appeared to be in support of the anticipated breakout.

Final Summary

• Solana’s active addresses surged to 4.7 million, signaling renewed activity across the network.
• Holder accumulation and a P/S ratio of 2 seemed to support SOL’s attempts to truly reclaim the key $75-resistance level.