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The Solana network has seen over $120 million in liquidity inflows from competing blockchains in the past month, signaling renewed confidence after a period of outflows due to the LIBRA memecoin scandal in Argentina. However, Solana’s native token, SOL, still faces technical challenges. In this article, we explore the factors impacting Solana's price and what investors should watch for.
Solana Liquidity Inflows: A Sign of Renewed Confidence?
In the last 30 days, Solana saw more than $120 million in liquidity bridging from rival blockchains. The largest contributions came from:
This strong liquidity influx could signal a renewed trust in the Solana network, especially after it had previously suffered a significant outflow following the LIBRA memecoin scandal in Argentina. However, despite the renewed interest, it remains uncertain whether these liquidity inflows will help SOL maintain its recent price gains.
Why Technical Signals Indicate Potential Struggles?
From a technical perspective, Solana is still in a bearish trend on the 1-day chart. For SOL to switch to a bullish trend, the price must close a daily candle above the $147 mark. However, as of now, Solana is facing resistance at the 50-day exponential moving average (EMA), which is currently around the $140 level. Despite the liquidity inflows, Solana’s price has struggled to break past this resistance, and the technical indicators suggest that SOL could face further downside in the near future.
Despite recent liquidity inflows, technical indicators suggest SOL could face further declines. A bearish divergence with the RSI hints at a potential correction, following a pattern seen in past price drops.
What Investors Need to Know
Investors looking to understand Solana’s price potential must keep an eye on key support and resistance levels. The current demand zone between $115 and $108 could offer Solana some support in the short term. Meanwhile, resistance is expected around the $144 level, where 27 million SOL (about 4.76% of the total supply) is concentrated.
Additionally, Glassnode recently reported a shift in Solana’s realized price distribution, showing that over 32 million SOL were purchased at the $130 level in the last few days. This suggests that $130 could become a critical support level for the token in the future.
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