Solana
Solana at $200 or $100? Why SOL became volatile today
- Solana was accumulating bullish pressure after its rejection around the $122 support level.
- High circulating supply and active participation indicate strong network engagement.
Solana [SOL] was consolidating in a bullish pennant pattern at press time. The price has fallen about 35% since May 20. However, the $122 support level rejected the bearish pressure.
Since its rejection, SOL has surged 10% in the past 48 hours. This trend indicates a continuation of the upward dynamic.
At the time of writing these lines, CoinMarketCap at SOL price at $136.33, an increase of 1.09% in the last 24 hours and an increase of 1.26% in the last seven days. Its market capitalization increased by 1.13% to $63.11.
Source: TradingView
The MACD indicator showed fading bearish momentum at press time. This could indicate a short-term price decline before the upward trend resumes.
Circulating feed
According to AMBCrypto’s analysis of Explore Solana data, Solana has 462.2 million SOL tokens in circulation, out of a total supply of 578.9 million SOL.
This suggests that approximately 79.8% of the total supply was actively used in the market. A large circulating supply is a bullish indicator, as it demonstrates active activity from users and investors.
With 377 million SOL actively staked, or approximately 65.1% of the total supply, there is clear evidence of high investor confidence.
Staking reduces the supply available for trading, which could help maintain price stability while potentially driving prices higher.
The 0.3% outstanding stake is insignificant, indicating that virtually all tokens staked contribute to the security of the network. This emphasizes the stability and reliability of Solana.
Source: Solana Explorer
Solana: What about investor confidence?
AMBCrypto further analyzed the total locked volume of Solana via DefiLlama. Notably, SOL accounted for 4.4% of the crypto market share. This indicates its growing popularity and investor confidence in its DeFi capabilities.
The trend in total volume locked over time showed that Solana held its position despite market fluctuations, which is a good sign for long-term investors.
Source: DéfiLlama
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Continued bullishness or imminent decline?
Solana’s growing bullish pressure appears to be supported by favorable network fundamentals and market sentiments.
The high percentage of circulating supply, along with significant active staking, indicates strong engagement and trust in the network. However, the MACD signal indicates a possible price pullback in the short term.