Bitcoin and Solana Look Tempting to Buy, As Support Holds for Both

Cryptocurrencies such as Bitcoin and Solana have been making lower highs since March, but they might be gearing up for another bullish run. BTC, SOL, and other digital coins have been in a consolidation period for several months, but they have formed a support zone where they are trading now, which seems very enticing for BTC buyers and Solana buyers.

Over the past week, SOL has experienced a sharp decline, falling roughly 20% on the daily chart after failing to break above the 50-day SMA (yellow), following a month of depreciation. The current market conditions have significantly affected SOL’s trading volume and market capitalization. This impact was evident as the altcoin’s trading volume dropped by nearly 50%, falling to just over $1 billion. However, the price has now reached a support level at $130, and today we saw a slight bounce off this support zone. This bounce is a positive indicator that a bullish reversal might be on the horizon. Traders and investors will be watching closely to see if SOL can sustain this upward movement and regain momentum.

Solana Chart Daily – Support Zone Above $130

Regarding on-chain metrics, Solana led the list of blockchains in terms of DEX transactions over the last 30 days by a significant margin, with 435 million. The data also showed that SOL’s daily active addresses grew last month, reaching 3.5 million by the 30th of August.

Bitcoin Chart Daily – Support Zone Above $57,000

Bitcoin’s price dipped below $50,000 in early August following a market crash but made a strong recovery, climbing steadily to surpass $64,000 by the month’s end. The rally hit resistance at the 100-day moving average. Last week, an upside-down pin bar indicated a potential bearish trend reversal, leading the price to fall to $57,000. Despite this, strong support at that level held firm, and we saw a rebound off this support zone yesterday.

In terms of BTC metrics, the number of Bitcoin wallets holding at least 100 BTC has surged to a 17-month high. In August alone, over 283 new wallets crossed this threshold, indicating a net increase in large-scale holders. This accumulation by substantial holders coincides with a reduction in holdings by smaller traders, who may be feeling the pressure from the recent price volatility. This shift in holdings suggests that larger investors are taking advantage of lower prices, while smaller investors might be liquidating their positions.

Bitcoin Live Chart