An individual with significant holdings in Solana [SOL] has transferred a substantial amount from Binance to staking. Specifically, a total of 47,154 SOL, valued at around $7.98 million, was recently moved and staked.
Within the last 72 hours, this particular investor has staked a combined 134,482 SOL, equivalent to approximately $23.58 million.
This trend underscores the increasing interest in staking among traders and investors. It could possibly be attributed to the diminishing appeal of meme coins, known for their high volatility and limited stability when compared to the consistent returns offered through staking.
By staking SOL, participants not only contribute to the network’s security but also ensure a steady income stream. This factor positions Solana as an appealing long-term investment option, especially amidst the prevailing uncertainty surrounding meme-centered assets.
The uptick in staking activity has the potential to steady SOL’s price by curbing its available supply. However, a simultaneous mass unstaking scenario could amplify selling pressure, potentially adversely affecting SOL’s valuation.
This transition towards staking signifies a shift towards a more mature perspective on cryptocurrency investments, prioritizing sustained growth over speculative short-term trading tactics.
Why SOL Might Not Have Hit its Bottom Yet?
Examination of Solana’s market behavior has hinted at a probable descent towards a key support zone located at approximately $120.
This level has historically functioned as both a barrier and a footing for SOL in the last year, establishing its significance in determining the asset’s imminent trajectory.
The analysis anticipates a potential bottom formation near this critical threshold. It is predicted that forthcoming token unlocks are unlikely to trigger sharp price oscillations as speculated. Instead, the price could stabilize around $120 to accommodate these unlocks.
If SOL’s price movement drains liquidity beneath the $120 mark but manages to steady above it, there is a chance that SOL could find its balance or rebound following the unlocking process, underscoring the resilience of this price level.
However, a sustained decline below this support level due to continued selling pressure might propel SOL towards lower support levels, potentially testing new yearly lows.
This could lead to a probable downturn just below the $100 mark.