Solana Price Eyes $200 Level Amid Market Correction

Coingapestaff
Updated
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Can Solana Price Hit $3,000? This Pattern Says It's Possible

Highlights

  • Whale transfers boost Solana price through significant market activity.
  • ETF speculation increases investor confidence and market interest.
  • Rising TVL indicates growing engagement and ecosystem growth.

Solana price has seen a notable surge over the past week, rising by nearly 20% as traders and investors react to a series of positive developments within the Solana ecosystem. Solana’s price trend showcases a notable upward trend over the week. 

Beginning on July 17, the cryptocurrency’s value steadily increased from approximately $160, demonstrating significant growth and reaching a peak close to $185 around July 22. 

This upward trend signifies a robust market response, possibly influenced by external market factors or developments within the SOL network. Following this peak, there appears to be a slight retraction in price, stabilizing around $175. 

Solana, a layer 1 blockchain network, has slightly declined over the past 24 hours. However, SOL is still hovering above the $170 support level amidst volatile trading conditions. At the time of writing, the SOL price is trading at $176, reflecting a downturn of about 2% during the U.S. time zone. 

According to CoinMarketCap data, despite the current dip, Solana maintains a robust market cap of approximately $81 billion, positioning it as the fifth-largest cryptocurrency by market cap. This performance is part of a broader context of significant trading volume, recorded at around $2.8 billion within the same period.

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    Solana Price Rises on Whale Transfers

Solana price has surged, fueled by significant whale transfers. Whale transfers refer to large cryptocurrency transactions often carried out by high-net-worth individuals or entities known as “whales.” These major players hold substantial amounts of cryptocurrency and can influence market dynamics merely by the scale of their trades. 

When whales move their holdings, especially on platforms like Solana, it can increase volatility and prices as market participants react to these large inflows or outflows. The perception that whales are accumulating or distributing assets can trigger a cascade of trading activities driven by smaller investors following their lead.

SOL witnessed a significant transaction today, as 124,819 SOL (valued at approximately 22,352,764 USD) was transferred from an unknown wallet to the cryptocurrency exchange Binance. 

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2. Solana ETF Speculation Boosts Market Sentiment

Solana price prediction points to rising momentum amidst growing speculation that it could follow in Ethereum’s footsteps with the approval of its exchange-traded fund (ETF). This possibility is buoyed by Ethereum’s recent success in securing an ETF, which has been a significant boon to its valuation and investor appeal. 

Furthermore, the blockchain’s rising fundamentals amplify the anticipation surrounding a Solana ETF. With its high throughput and low transaction costs, Solana continues to attract a broad spectrum of decentralized applications (dApps), which contribute to its ecosystem’s growth. 

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3. Open Interest and TVL Indicate Bullish Trends

A surge in open interest and Total Value Locked (TVL) on Solana indicates growing investor confidence and engagement within the ecosystem. The recent spike in open interest reflects heightened demand for Solana-based derivatives, which often serves as a forward-looking indicator of bullish sentiment among traders. 

3 Catalysts Driving Solana Price Imminent Climb To $200 This Week
Source: Coinglass

This surge in open interest and increased trading volume suggests that more investors are positioning themselves for a potential uptick in SOL price. According to Coinglass data, the rise in TVL, which has soared by over 25% in the past month to $5.248 billion, further underscores this trend

The daily technical indicators for Solana (SOL) reveal significant market movements and trends. The Relative Strength Index (RSI) is at 64.79, indicating that Solana is approaching the overbought zone but still has room for potential upward movement. 

3 Catalysts Driving Solana Price Imminent Climb To $200 This Week
Solana Price Chart|Source: TradingView

The Moving Average Convergence Divergence (MACD) indicator further supports this bullish trend, with the MACD line at 9.07, crossing above the signal line at 5.18. This crossover typically signals a buying opportunity and suggests that the bullish trend may continue.

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Frequently Asked Questions (FAQs)

1. Can SOL Hit ATH?

Solana's strong market momentum and positive developments could drive it to new all-time highs.

2. What is driving Solana's price surge?

The surge is driven by significant whale transfers, ETF speculation, and increasing Total Value Locked (TVL).

3. Is Solana a Good Investment?

Current market trends and technical indicators suggest bullish sentiment, making Solana a strong investment.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.