The Solana (SOL) network, a top-tier web3 ecosystem aiming to dethrone Ethereum (ETH) as the top smart contract blockchain, has experienced a significant rise in on-chain activity in recent times. Amid heightened fear of further crypto sell-off in the coming weeks, the Solana price invalidated a possible bullish breakout following a notable decline last week and on Monday.

According to the latest market data, Solana’s price has dropped more than 21 percent in the past two weeks. However, the large-cap altcoin, with a fully diluted valuation of about $80 billion, rebounded over 15 percent in the last 24 hours to trade around $138 on Tuesday during the mid-London session.

Analyst Issues Warning for Solana Traders

According to crypto analyst Ali Martinez, Solana’s hourly price has approached a crucial point that could either yield further bullish rebound or capitulation ahead. The crypto analyst noted that the TD Sequential indicator has flashed a sell on SOL’s hourly time frame.

Consequently, the crypto analyst expects Solana’s price to retrace towards the range between $130 and $135. However, the bearish sentiment could be invalidated if Solana’s price consistently closes above $146 in the coming days, potentially pumping the altcoin toward $166.

Market Picture

The Solana network, with more than $4.4 billion in total value locked (TVL) and over $3.5 billion in stablecoins market cap, has gradually outshone Ethereum’s Web3 activity. Despite lacking in the spot ETF market, Solana’s on-chain activity has gradually grown, fueled by its meme coin industry.

Consequently, after consolidating in the past seven months, the SOL/ETH pair is on the verge of bullish breakout to a new all-time high.