Solana
Solana Price Analysis: Solana Staking Hits $50 Billion After VanEck’s SOL ETF Filing
When investors deposit more coins into staking contracts during a bear market phase, as observed on the Solana trend chart above, it suggests that major investors maintain a positive view on the asset’s long-term price outlook.
Additionally, while temporary, staking effectively reduces the short-term supply of an asset in the market, cooling selling pressure while increasing the likelihood of an accelerated price breakout when market sentiment turns bullish.
More so, considering how SOL tokenomics triggered a 0.22% drop in the inflation rate during this period, Solana stakers are now incentivized to stake even more tokens in the days to come .
These key factors reflect how Solana’s top investors are positioned to navigate the current crypto market downtrend, mitigating book value losses through passive income, while waiting for the next phase of recovery.
Solana Price Prediction: Holding $140 Could Trigger a Major Bounce
Solana’s recent price action shows strong potential for a bullish rally if it manages to hold above the critical support level of $140.
The Fibonacci auto-extension levels indicate that the $141.52 mark is important and holding this level could open the way for further gains. The chart highlights a 24.90% increase over the last five days, indicating increasing bullish momentum.
The immediate resistance level to watch is around $147.77, in line with the 0.786 Fibonacci extension. A successful break above this resistance could see Solana target the next significant resistance at $153.72.
Beyond that, the key psychological level of $160 could come into play, marking the Fibonacci extension at 0.618. A move above these levels would strengthen the bullish outlook, potentially pushing the price towards the $175.56 mark, where substantial resistance lies.