Solana : Does the URPD Signal Announce a New Pump ?
For the past week, Solana (SOL) has maintained a notable bullish performance, gaining over 20% after a recent dip to the $93 support on April 7th. While SOL has recovered its upward trend, key metrics show a major area of interest in its price dynamics for a significant number of investors.
Indeed, Glassnode, a leading financial data and analysis platform, has highlighted a crucial shift in Solana’s price dynamics as it attempts to overcome crucial resistance zones. In the recent analysis shared on X, Glassnode points out several key price areas for the altcoin’s future performance.
By examining the UTXO Realized Price Distribution (URPD) indicator, the platform reveals that SOL has formed the largest supply cluster in its recent history. This significant accumulation of SOL held by investors around a particular price level identifies a key area of interest that could serve as a crucial support or resistance zone.
According to Glassnode, SOL’s URPD shows that the cost basis has significantly shifted these past 2 days, with the emergence of the largest supply cluster. The data indicates that this massive cluster occurred at the $129.79 level, where investors accumulated over 32 million SOL, roughly 5% of the altcoin’s total supply.
With market participants heavily concentrated in this range, Solana could be approaching a pivotal moment where the price direction could be determined by the dominance of buyers or sellers on the trend. During upcoming pullbacks, this zone could act as support, reflecting strong trading activity at this price level.
Significant Upside Potential for Solana
Although the price of SOL has faced volatility, the timing seems right to buy the dip as the altcoin gears up for an upward move. According to crypto analyst Ali Martinez, Solana is poised for a significant bounce.
This forecast is based on a TD Sequential buy signal on the weekly chart. This signal indicates growing bullish momentum, suggesting that the current correction may be nearing its end.
It’s the second time in a week that the indicator has sent a buy signal on the weekly timeframe, despite declining price performance. With the first signal, Martinez noted that SOL needed to hold above $95 and break through $121 to set the stage for a rise to $147.
With strong technical support and favorable technical indicators, Solana seems to be at a crossroads, between several significant demand zones. The RSI shows a bullish divergence that needs confirmation in the coming days by holding above $129.
A rise to $147 could take SOL to $175. While a failure to break above this zone could push it lower to $88 or even $65, according to Ali.
