Solana’s stablecoin supply has experienced a significant increase to $12 billion, leading to enhanced liquidity and maintaining SOL’s value above $200 despite market fluctuations.
Nevertheless, a prominent analyst has cautioned about potential pressure from $11.35 billion in short leverage at $245, necessitating a 22.5% price surge. The question arises whether such a leap is feasible given the current market dynamics.
Examining the Probabilities
Despite the market’s unpredictability, SOL has demonstrated resilience in the past five days. Traders swiftly seized the opportunity during the price drop to $188, propelling a 8% increase, supported by a surge in trading volume indicative of strong buying activity.
In addition, Solana has outperformed Ethereum [ETH] in significant aspects such as decentralized exchange (DEX) volume, despite SOL’s considerable decline from its all-time high of $40 billion to $4.5 billion most recently.
It is evident that the hype surrounding the Official Trump [TRUMP] memecoin was short-lived.
With a stablecoin market cap of $12 billion and robust demand in DEX, Solana displays bullish signals. The SOL/BTC chart is on the verge of a positive turn, as investors shift towards high-cap assets as a hedge against Bitcoin [BTC].
Solana is strategically positioning itself to reclaim a market cap of $100 billion and surpass Binance Coin [BNB]. FOMO is gradually building up, with SOL potentially targeting a surge to $215 in the near future.
Having said that, achieving a 22% increase after a mere 10% gain in the past month might present challenges, unless consistent buying pressure emerges.
The Relative Strength Index (RSI) indicates no overbought conditions, and there are no signs of network overheating in the Solana ecosystem. Will the bulls capitalize on this momentum?
Is SOL Poised for a Shakeout of Weak Holders?
With over 70% of perpetual contracts on Binance favoring a ‘long’ position, the optimistic sentiment surrounding Solana is gaining traction.
In addition, the activation of more than 300,000 wallets within just two days aligns with SOL’s notable 8% surge.
Considering these factors, reaching $245 does not appear far-fetched. However, maintaining a price level above $200 is essential for Solana to sustain its $100 billion market cap and provide a psychological uplift for investors.
Backed by encouraging on-chain data, a bullish shift in SOL/BTC, futures traders projecting an uptrend, and traders promptly seizing buying opportunities, the potential for growth remains undeniable.
Opting to HODL Solana seems judicious, with a clear trajectory towards approaching the $11 billion liquidity cluster at $245 in the days ahead — subject to sustained momentum.