Summary
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Price Consolidation & Uncertainty: Solana’s price is stuck in a tight range ($120.76 support, $131 resistance) reflecting broader market uncertainty and a recent 36% monthly drop.
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TVL Struggles & Cautious DeFi Sentiment: Solana’s Total Value Locked remains below $7 Billion, failing to regain the $10 Billion mark, signaling constrained capital inflows despite a strong DeFi presence.
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Mixed Whale Signals: Whale count slightly increased but remains below recent highs, indicating cautious accumulation and ongoing hesitation among large investors.
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Critical Price Levels: Traders should closely watch support at $120.76 and resistance at $131 as SOL’s next major price movement will likely depend on breaking these key levels.
Solana’s (SOL) price is currently navigating choppy waters, experiencing difficulty in firmly establishing itself above the $130 mark. This price behavior reflects a pervasive sense of ambiguity within the wider cryptocurrency market.
Over the last month, SOL has witnessed a considerable downturn, shedding roughly 36% of its value, indicating sustained downward pressure from sellers.
With Solana’s Total Value Locked (TVL) hovering below $7 billion and on-chain indicators from large investors providing mixed signals, market participants are keenly observing for indications of the next significant directional shift.
Solana’s DeFi Engagement Remains Below Peak Levels
The current Total Value Locked within the Solana ecosystem stands at $6.72 billion, as reported by DeFiLlama.
Since late February, specifically February 23rd, Solana’s TVL has been unable to recapture the $10 billion threshold.
This persistent level below $10B suggests limited new capital flowing into its decentralized finance (DeFi) applications and platforms.
Earlier in the year, on January 18th, Solana’s DeFi sector reached its highest point in TVL at $14.24 billion.
However, a consistent decrease in TVL has occurred since this peak.
Despite maintaining a prominent position within the decentralized finance landscape, Solana’s reduced TVL points to a prevailing cautious stance among investors deploying capital into its ecosystem.
Whale Activity Presents a Mixed Investor Sentiment
Analysis of on-chain data from Glassnode reveals a marginal increase in the number of Solana “whales,” defined as wallets holding 10,000 SOL or more.
This cohort of large holders expanded slightly from 5,008 to 5,031 over a brief two-day period.
However, it’s important to note that this figure is still below the recent high of 5,053 whales observed on March 3rd. Due to their substantial holdings, these large investors can exert considerable influence over market trends.
Their recent accumulation could be interpreted as a sign of renewed optimism in Solana.
Nevertheless, the current whale count, being below previous peaks, suggests ongoing hesitation within this investor segment and that a full recovery to previous confidence levels hasn’t yet materialized.
Generally, a rising count of large holders signifies strong investor conviction, yet current metrics suggest a market that is still in a phase of transition and uncertain direction.
Analyzing Solana’s Price Trajectory: Key Levels to Watch
SOL’s trading is presently confined within a tight range, bound by a support level at $120.76 and resistance positioned at $131.
Should Solana’s price fail to maintain its position above the identified support level, a potential descent toward $112 becomes increasingly likely.
Such a move would constitute a further and more pronounced price correction within a prevailing bearish trend.
Conversely, should the price successfully break above the $131 resistance barrier, it could initiate an upward move towards a target of $152.90.
If bullish momentum gathers further strength, SOL may then attempt to retest higher levels, potentially aiming for $179.85.
The immediate future days will be crucial for establishing the next significant price movement. Solana’s price action currently remains constrained within these critical levels.
Also Read: US Market Set to Welcome Inaugural Solana Futures ETFs on Thursday
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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