Potential $1,000 Surge or Bearish Drop Ahead?

• Solana shows bullish signs with current price recovery to $146.
• Analysts predict potential rise to $1,000, contrasting with short-term bearish patterns suggesting a drop.

Solana [SOL] has exhibited a resilient recovery over the past week. As of press time, SOL has climbed back above the $145 mark, registering a 2.2% increase in the last 24 hours alone, bringing its current trading price to around $146. 

This rebound follows a significant dip that saw the crypto asset briefly falling below $145 last week.

Analysts weigh in on Solana’s future

The recent price actions of Solana appears to have caught the attention of crypto analysts, sparking a variety of forecasts regarding its future. Among them is the crypto analyst known as Kaleo on social media platform X who has now projected an optimistic scenario for SOL. 

According to Kaleo, Solana’s current chart patterns bear a striking resemblance to Ethereum’s movements in late 2020, just before it soared to new all-time highs.

Kaleo suggests that if Solana follows a similar trajectory, reaching the $1,000 mark is within the realm of possibility.

Source: Kaleo on X

However, contrasting views from other analysts suggest a more cautious approach. Another prominent voice in the crypto analysis community, Ali, has pointed out a potential bearish pattern forming on the Solana chart. 

Ali’s observations on X highlight a developing ‘head and shoulders’ pattern on the hourly chart, indicating that a drop below $141 could trigger a further price correction, potentially driving SOL down to around $122.

Open interest and active addresses

While the technical analysis provides a mixed outlook, the fundamental data surrounding Solana shows significant activity.

Over the last 24 hours, Solana’s open interest—an indicator of the total number of outstanding derivative contracts, such as futures and options, that have not been settled—has risen by 2.38%, now valued at approximately $2.11 billion. 

Source: Coinglass

Additionally, the volume of these open contracts has surged by nearly 35% to around $10.80 billion.

This increase in both open interest and volume typically suggests a growing interest from traders, potentially stabilizing prices or even pushing them higher if the trend continues.

Source: Solscan

Conversely, the number of active addresses on the Solana network tells a different story.

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There has been a noticeable decrease in active addresses, dropping from 1.264 million earlier in the month to 1.122 million today.

This decline could indicate a cooling off in network activity, which might affect the asset’s price stance negatively, particularly if the trend continues.