🤯 SOL Price Crashes 18%, On-chain Metrics Remain Bullish: $200 Retest Soon?

📉 Solana Faces Market Dip
Solana (SOL) and the crypto market faced a significant dip mid-week, fueled by bearish market conditions and geopolitical tension between Iran and Israel. Despite the 18% crash, SOL is at crucial support, hinting at a reversal due to on-chain growth.

🚀 SOL Prepares for Rally
Last month, SOL saw a 60% recovery from $121 to $193.8, reclaiming the 50-day, 100-day, and 200-day EMAs. This recovery helped SOL break out of a four-month consolidation, breaching the triangle pattern resistance on July 19th. This pattern suggests potential momentum for a rally.

🔄 Current Price Action
SOL is trading at $164.5, just above the 50-day and 100-day EMA support at $160. It's also retesting the triangle's upper trendline. If buyers act, a recovery rally could push SOL to $210 and possibly $260.

📈 On-Chain Growth
On-chain data supports this outlook, with new addresses on the Solana network increasing since May 2024. On August 1st, new addresses surpassed 1.25 million, and active addresses remain above 2 million, showing strong user engagement.

🛑 Potential Downside Risk
If SOL breaches the $160 support, it could attract sell pressure, leading to a potential 24% crash to $130, invalidating the bullish outlook.