Solana’s price surged by 5.72% to $142.18 recently, contrasting with a 7.76% decline on July 4. The drop below $139.50 support suggests potential further declines ahead.
Annual Performance and Current Market Dynamics
Despite a 15.77% monthly decline, Solana has delivered a remarkable annual return of 595.28%, outperforming other major cryptocurrencies.
Market Sentiment and Technical Outlook
The recent breach below the $139.50 support level, coupled with increased trading volume, indicates ongoing selling pressure. Analysts anticipate a potential retest of the $135.65 resistance, which, if surpassed, could trigger a bullish reversal and re-establish long-term support.
Volatility and Influencing Factors
June saw significant price swings for SOL, ranging from $175 to $124, driven by broader market trends and internal network challenges like MEV concerns and “sandwich attacks” by validators. Ethereum’s strong performance and limited new inflows into Solana also contributed to price fluctuations.
Optimistic Developments and Institutional Influence
Despite challenges, SOL closed at $144 with optimism driven by ETF filings from VanEck and 21Shares, boosting prices by 10% in a single day.
On-chain Activity and User Adoption
June witnessed a notable increase in daily transactions on Solana, indicating growing user adoption and network activity. Despite a slight decrease in new addresses compared to May, daily active users peaked at 2 million on multiple occasions.
Total Value Locked (TVL) and Market Position
TVL within Solana’s ecosystem decreased from $4.8 billion to $3.4 billion in June but has shown substantial year-over-year growth, reflecting increasing engagement and confidence in the platform.
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