While Bitcoin hovers around $63,500, many altcoins face losses, but LUNA tokens surge as Do Kwon is expected to serve his home sentence. Amidst these market fluctuations, Solana (SOL) showcases its own set of dynamics and potential future pricing trends.
Current Surge and Decline of SOL Coin
Investors who snagged SOL at a low of $8.50 and sold above $200 reaped significant profits. Yet, the coin’s value declined following Bitcoin’s volatility and diminishing hype around Solana’s meme coins.
Despite these setbacks, Solana’s Relative Strength Index (RSI) settled at 48 after signaling an overbought condition, anticipating either a potential dip towards 30 or a rebound to an overbought status. Notably, the total value locked (TVL) in the Solana ecosystem has soared past $4 billion for the first time since April 2022, showcasing the growing interest in the network.
Network Activity and User Growth
The rising TVL also indicates the growing popularity of DeFi protocols on Solana, although the current value remains below the historic high of $10 billion. DeFi transactions peaked on March 14, while DEX platforms consistently handle 6 million transactions per day, boosted by the launch of new Solana tokens. Moreover, the network’s unique user count has surged from 717,000 at the start of the year to 2 million on March 17, signaling an intensifying consolidation phase.
Price predictions for SOL suggest a short-term stagnation as the coin’s value has dipped below key long-term averages. Therefore, it may trade within a limited range before any significant movement occurs.
Potential price adjustments could see SOL targeting $161, with a short-term support level of $137. An uptrend, aligned with Bitcoin’s recovery, might push SOL back to the $205-$210 mark, possibly paving the way to $260.