Solana could rally as the Breakpoint conference approaches

• Solana saw the largest daily increase in single-day active addresses on its network.
• SOL historically gathered before the Solana Breakpoint conference.
• SOL could rise to $163 if it sustains an extended move above the key $136 resistance.

Solana (SOL) rose 0.5% on Tuesday after a significant increase in daily active addresses on the network. Investors are anticipating a potential rally as the Solana Breakpoint conference approaches.

SOL needs other key metrics to catch up with pre-breakpoint growth

With ten days until the annual Solana Breakpoint conference, the Solana network is experiencing increased network activity. According to data from Artemis, Solana posted the largest single-day daily active address (DAA) increase on Tuesday, after adding more than 5.4 million new addresses.

SOL Daily active addresses and daily transactions

Solana’s daily transactions are also on the rise, rising 22% to 40.3 million between September 8 and 9. This steady growth could help Solana’s network charges recover from their downward trend since August.

Network fees are currently around $595,000, levels last seen before the March meme coin frenzy. A similar trend is visible in the trading volume of Solana’s decentralized exchange (DEX), which fell by more than 27% in August.

If Solana network fees and DEX trading volume increase as the Breakpoint conference approaches, it could fuel a SOL rally in the coming weeks. The Solana Breakpoint Conference will take place on September 20 – 21, 2024.

SOL DEX trading volume and network fees

According to analyst @ali_charts, SOL experienced a price surge two weeks before the Solana Breakpoint conference. He noted that SOL increased by 35% in 2021 and 2022 and 60% in 2023 before the conference. Therefore, it is essential for investors to be on the lookout for a potential price rally in the coming days.

During such conferences, projects tend to make product announcements, which can lead to an optimistic spark. Therefore, it may also prove beneficial to pay close attention to Solana ecosystem tokens.

On the other hand, industry events are often treated as sell-news events, leading to a potential price drop in key projects.

SOL could rise higher above key resistance

On the 4-hour chart, SOL is trying to support a move above a key rectangle resistance around $136. A sustained move above this level could see SOL rise towards $163. However, failure to trade well above $136 could lead to a drop in SOL towards the $120 support level.

SOL/USDT 4-hour chart

The 200-day simple moving average (SMA) represents rising resistance and could prevent further upside in SOL. The Relative Strength Index (RSI) is above the median line at 60, indicating rising momentum. The %K and %D lines of the stochastic oscillator (Stoch) have crossed into the oversold region, which means that a short-term correction may be imminent.

In the short term, SOL may drop to $132 to liquidate $16.02M worth of positions.