Solana price will return to $127
The Solana (SOL) blockchain network has attracted a large influx of funds recently, which is undoubtedly a recognition of its technical strength and future development potential. Investors' confidence in Solana has increased, and funds have continued to flow into this ecosystem, including funds transferred from other blockchains such as Ethereum.
According to IntoTheBlock's sharing on social media, Solana received more than $100 million in capital inflows in the past week, of which Ethereum contributed more than $70 million. This data undoubtedly injected strong momentum into Solana's future development.
At the same time, we noticed that Solana's daily active address number showed an upward trend again after a brief decline. Its daily transaction volume has also remained stable in the past 30 days, which further proves Solana's high usage and widespread adoption.
In the field of DeFi, Solana has also performed well. With the increase in total locked volume (TVL), Solana's position in the DeFi market is becoming increasingly solid, providing investors with more choices and opportunities.
However, despite Solana’s remarkable success in attracting funds, its token price has not soared. Instead, the price of SOL has declined in the past few days and weeks, mainly reflecting the reduction in transaction fees and the decline in blockchain revenue.
Market data shows that SOL shorts are currently dominant, causing the token price to fall. At the time of writing, Solana is trading at $144.03 with a market capitalization of over $67 billion. However, what is worrying is that despite the price drop, the trading volume has increased by more than 40%, which may indicate that the price will continue to fall.
Despite this, investors’ confidence in Solana has not been completely lost. SOL’s weighted sentiment indicator has entered the positive zone, indicating that bullish sentiment is rising. This means that although the price may face pressure in the short term, Solana still has great development potential in the long run.
When looking at Solana’s daily chart, we find that despite the increase in bullish sentiment, technical indicators show a bearish trend in the market. This is further confirmed by the decline in the relative strength index (RSI). Therefore, some analysts believe that the price of SOL may fall to $127 in the next few days.
