Solana is facing critical levels as USDA casting fuels market speculation.
The recent casting of Solana by the US National Oil Company has raised questions in the market about its influence
However, Altcoin indicators show potential volatility in the short term
Solana Inc.’s (SOL) price has been fluctuating around critical levels lately, with its recent movement attracting a ton of interest. However, its price action isn’t the only reason why SOL is in the news today.
In fact, according to a tweet from Lookonchain on X,
"Circle minted 250M USDC above#Solana5 hours ago again!#Circleminted 4.5B USDC against #Solana
In response to Circle’s additional $250 million in funding on Solana, the market has been wondering how the influx of massive liquidity will affect the price of SOL.
As of April 2, Circle has minted a record $4.5 billion on Solana, making it a turning point for traders and investors. However, the latest minting activity could have an even bigger impact on the altcoin.
What does the DoD casting mean for Solana?
Well, it is difficult to determine whether the increase in supply from US oil companies will affect Solana's liquidity situation. If there is more money in circulation, then trading may be more intense, either boosting SOL or causing it to fall.
The key question will be – how will the market absorb this liquidity? Will it stimulate demand or trigger a sell-off?
Triangle block up!
Taking a closer look, the price chart for SOL shows that a symmetrical triangle pattern may have just formed. This is common when volatility tends to occur quickly.
At the time of writing, although the cryptocurrency is testing $140 as a key support level, it is still facing resistance at $153.95. A breakout in either direction could lead to a more significant move for Solana, so this is an important period for any investor.
A warning to Solana
Coinglass’s Liquidation Heatmap data fully reflects the market sentiment of this token.
The heat map shows that liquidation activity is high in the $140 to $145 range. If Solana breaks below these levels, we could see a large number of forced liquidations, which would lead to a drastic change in price.
What happens behind the scenes
Coinglass’s net flow data is also quite telling.
For a long period of time, Solana has been experiencing negative outflows, with more SOLs leaving the exchange than being added. This usually indicates assets being held by investors anticipating future profits.
With the market on the brink, SOL support levels are critical. Recent price action in U.S. Treasury futures, coupled with key market indicators, suggests volatility could be around the corner.
However, the chart in the coming hours will actually determine the short-term direction of Solana.
