Solana Buyers Outnumber Sellers 2-to-1 —SOL Price to Hit $150? 

Key Insights:

• Solana (SOL) price rose to a historic 20-month peak of $126 on Dec 25, before entering a 12% retracement to $110 on Tuesday morning. 
• Before the correction on boxing day, Solana had posted 6 consecutive days of bullish price action
• Wallets buying SOL currently outnumber those selling 2:1 signaling that the price pullback was not triggered by significant deterioration in the Solana network’s growth fundamentals.  

Solana (SOL) price delivered a blistering 18% rally on Christmas day, bouncing from $107 to a peak of $126 within the Dec 25 daily timeframe.

On-chain analysis examines how changes in Solana’s fundamental growth metrics, and the overall sentiment among network participants could impact SOL price action in the days. 

Can Solana extend its yearly gains toward the $150 territory before 2023 draws to a close?

Investors Buying SOL Still Outnumber Sellers Despite Retracement 

Solana price has been on a tear in December as the bulls look set to end the 2023 on a strong footing. However, in a dramatic turn of events, Solana entered a 12% retracement from its Christmas day peak of $126 to $110 on Tuesday morning. 

After 6 consecutive days in the green, Solana’s boxing day correction raises concerns among bullish daily swing traders. However, an inquest into Solana’s fundamental on-chain metrics suggests the bulls have no major cause for alarm, just yet. 

The latest data readings pulled from Hellomoon, a Solana native on-chain data analytics tool, firmly corroborates this view. As depicted in the chart below, the average number of unique wallets that SOL Receivers (buying addresses) for Dec 26 stood at 1.04 million. 

Notably, this is more than two times higher than SOL Senders (sellers) currently averaged at 471,235.

The Unique Senders vs. Receivers is a critical on-chain metric that measures the distinct entities initiating cryptocurrency transactions (senders) compared to those receiving them. This metric provides essential insights into the network’s user activity, liquidity distribution, and overall transaction dynamics. 

When the number of Receivers (buying addresses) outnumber Senders as observed above, it is widely regarded as a bullish signal. It suggests that despite Solana price currently trending at a historic 20-month peak, te demand for SOL is still increasing. 

With the number participants actively looking to enter the Solana market (Unique senders), two time higher than looking to exit or cut down on their positions, SOL price rally is still in very much in play.

If this thesis holds true, SOL bulls can anticipate that SOL will likely shake off the retracement, and stage another leg-up toward the $150 territory in the coming days.