Solana Maintains Market Dominance Despite Recent Pullback: $200+ Next Target?
Solana (SOL) is currently trading at $172, down over 1% in the past 24 hours, as SOL/USD consolidates after failing a test of the critical
Quick overview
- Solana (SOL) is trading at $172, down over 1% after failing to break the $180 resistance level, but shows a potentially bullish setup.
- Recent capital inflows have returned, indicating fresh investor confidence, with Solana's realized valuation rising significantly from $4 billion to $78.5 billion.
- Solana dominates DeFi revenue, capturing over 50% of total application income, while processing 731 million transactions in the last week.
- Upcoming FTX creditor distributions could create temporary selling pressure, but if SOL can break the $180-$185 resistance, it may target $210.
Solana (SOL) is currently trading at $172, down over 1% in the past 24 hours, as SOL/USD consolidates after failing a test of the critical $180 resistance level. Despite the recent 5.65% pullback since May 14, SOL’s technical analysis reveals a potentially bullish setup.
Capital Inflows Return After Months of Outflows
With Glassnode showing Solana has reversed its negative realized cap flows, on-chain data supports the optimistic case. Now expanding at 4–5%, the 30-day capital inflows match XRP’s rate of growth and indicate fresh investor confidence. Solana’s realized valuation, which shows mounting market momentum, has risen from $4 billion to $78.5 billion.
Solana Dominates DeFi Revenue and Transaction Volume
Researcher 0xGumshoe notes that Solana now represents over 50% of total DeFi application income in a stunning feat. This shows an amazing 166x expansion, well above Ethereum, whose fee domination has dropped to just 12.84%.
Gumshoe said: “For every $100 of app revenue in crypto, $50 is captured by Solana Apps.”
Processing 731 million transactions in the last week—much above rivals like Base, which recorded just 77.1 million transactions over the same period—the technological powers of the blockchain continue to astound.
FTX Distributions Might Generate Temporary Stress
The forthcoming FTX creditor distributions set for May 30 could be a headwind. The closed exchange revealed intentions to pay qualified creditors about $5 billion, hence raising selling pressure. Solana has been greatly impacted by past FTX distributions; the unlocking of 11.2 million SOL on March 1 corresponds with a clear price drop.
SOL/USD Technical Analysis: Key Support and Resistance Levels
Solana is in a commanding technical zone right now trading above its 200-day EMA ($162.21) but below its 200-day SMA ($181.16). Long as SOL keeps above the 200 EMA, the structure stays positive. A continuous climb above $181.16 would probably set fresh momentum toward the $200-$ 220 range in motion.
Megaphone Pattern Signals Volatility and Upside Potential
SOL forms a megaphone formation with an upper resistance trendline close to $185 on the 4-hour chart. A confirmed breakout above this level might drive the price toward $210—a 21% rise from present levels. Failure to break $180, however, might cause a retracing toward the 100-day EMA at $161 or less support close by.
Solana Price Prediction: Good Foundations Support Extended Development
Solana’s leading position in DeFi revenue, transaction volume leadership, and favorable capital inflows point to robust foundations even with short-term uncertainty. The $210 aim becomes clear if SOL can negotiate the approaching FTX distributions and pass the crucial $180-$185 resistance zone.
Solana is positioned to lead the next phase of altcoin expansion when the larger crypto market settles, especially considering its technological advantages and growing ecosystem. Given the volatility of the market, traders should be alert for rising volume as validation of any breakout effort and keep suitable risk control.
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