Solana
Solana Stablecoin inflows totaled $1.5 billion in 6 months.
Solana experienced a significant increase stable coin capital inflows, amounting to billions over the past six months. During this period, SOL Price soared nearly 250%.
The stablecoin’s total market cap currently stands at $161 billion, about 14% from the all-time high of $188 billion in April 2022. Analysts suggest the layer 1 token could see even greater gains important if the stablecoin market capitalization returns to its peak.
Collecting Solana Stablecoin Entries GROUND Price Rally
The volume of stablecoin inflows into the Solana network has reached $1.5 billion since December 2023, DefiLlama data watch. During this period, the SOL Price is up 246% to $173 at the time of writing. The current value of stablecoins on Solana is $3.04 billion, while the total value blocked (TVL) stands at $4.92 billion.
Stablecoin inflows and Solana price rise are closely linked. Higher liquidity makes it easier to trade SOL tokens, leading to more trading activities and investments.
As a result, the demand for SOL tokens increases, driving up the price. This growing interest and investment further builds trust in the Solana network, attracting more developers, projects, and users.
Also read: What is a Stablecoin? A beginner’s guide
Solana Stablecoin Entries: Source: ChallengeLlama
The crypto community shares this positive outlook on Solana. Many believe that the continued influx of stablecoins will further strengthen the network’s liquidity and trading volume.
The stablecoin market capitalization peaked at $188 billion in April 2022. Currently, DefiLlama reports it at $160 billion. According to pseudonymous blockchain researcher Gumshoe, closing this $28 billion gap could result in a 102% increase in the price of SOL from its current level of $173.
“When the stablecoin market cap returns to ATHs, SOL will be at a low of $350,” said Detective.
Also read: How to Buy Solana (SOL) and Everything You Need to Know
Additionally, a recent CoinShares report highlights up to $5.8 million in weekly inflows into Solana-based instruments. Significant investments from large financial entities indicate institutional interest and confidence in the asset’s potential.
SOL Price Outlook
Solana Price is trading with a bullish bias, holding within the confines of an ascending parallel channel. It faces immediate resistance due to the average threshold of $177.24. This is the midline of the supply zone, extending from $167.78 to $187.01.
A decisive candlestick closed above this roadblock would see SOL Price extend gains to the next block of resistance orders between $194.12 and $202.47. Breaking the midline at $198.28 would set the tone for an extended move north. SOL could then go as far as reclaiming the high of $210.18 from the March 19 trading session.
Momentum indicators show that SOL bulls are poised to experience more buying momentum. This can be seen with the relative strength index (ROI) crossing above its signal line (yellow band). The Moving Average Convergence Divergence (MACD) is also about to cross its signal line (orange band). These crossovers suggest growing bullish sentiment and a higher likelihood of positive price action.
Also read: Solana (SOL) Price Prediction 2024/2025/2030
On the other hand, a rejection from the channel’s midline and a move below the immediate support at $162.75 could trigger panic selling. Nonetheless, the bullish outlook for SOL would only be invalidated once Solana price closes below $126.88 on a one-day time frame.
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