Solana’s price has increased significantly by 5.72% to $142.18, compared to a 7.76% drop on July 4. It fell below the crucial support level of $139.50, indicating potential further declines.
Despite a 15.77% decline this month, Solana has achieved an impressive annual return of 595.28%, outperforming other leading cryptocurrencies.
The recent decline below the $139.50 support level and increased trading volume indicate potential ongoing selling pressure. Solana’s price might retest the $135.65 resistance level, and overcoming it could lead to a reversal and reclaiming of the long-term support.
Last month alone, SOL saw significant price fluctuations, ranging from a high of $175 to a low of $124. The decline was influenced not only by broader market trends but also by internal issues within the network.
Concerns about maximum extractable value (MEV) and incidents of validators exploiting traders through “sandwich attacks” exacerbated the downturn. Additionally, Ethereum’s strong performance as a Layer 1 blockchain and limited new inflows into Solana further contributed to SOL’s price drop.
However, SOL closed the month at $144 on a bullish note, spurred by optimism around VanEck and 21Shares’ filing of the first Solana spot exchange-traded fund (ETF) applications.
This news triggered a 10% price increase in a single day, continuing a positive trend that began in late May. Analysts viewed the potential approval of spot Solana ETFs similarly to Bitcoin ETFs, anticipating a favorable impact on SOL’s price.
On-chain data revealed a robust increase in Solana’s daily transaction volume throughout June, rising from 32.7 million transactions on June 1 to 43.8 million by June 30, marking a nearly 34% uptick.
This growth indicated expanding user adoption and heightened network activity. Despite a slight dip in new addresses joining the network compared to May, Solana experienced peaks in daily active users, hitting 2 million on multiple days.
The total value locked (TVL) within Solana’s ecosystem declined from $4.8 billion on May 1 to $3.4 billion by June 30, a 29% decrease for the month.
Nonetheless, Solana’s TVL has grown substantially year-over-year, reflecting increasing engagement and confidence in the platform.
Despite ranking fourth in TVL and remaining a major player in DeFi, backed by its strong decentralized exchange (DEX) trading volume and mass adoption, will Solana price surge?
$1 Million SOL Donation Amid Price Fluctuation
Multicoin Capital, a prominent crypto investment firm, has pledged to match up to $1 million in Solana (SOL) donations to the Sentinel Action Fund, a conservative super PAC supporting pro-crypto Republican candidates for the U.S. Senate.
The initiative, facilitated through Gemini, serves as a trial for Dialects’ “Blink” technology. Solana enthusiasts can easily donate to the Sentinel Action Fund while completing the necessary Federal Election Commission paperwork.
The Sentinel Action Fund is backing four Republican candidates who have received high ratings from the crypto advocacy group Stand With Crypto.
The PAC has targeted Sam Brown, who is running in Nevada against incumbent Senator Jacky Rosen (D-NV), despite Rosen’s “A” rating from Stand With Crypto.
David McCormick, challenging Senator Bob Casey (D-PA) in Pennsylvania, has a “C” rating from Stand With Crypto.
Bernie Moreno, running in Ohio against Senator Sherrod Brown (D-OH), the chair of the Senate Banking Committee, has been critical of crypto and is seeking to crack down on the industry, earning him an “F” rating from Stand With Crypto.
Tim Sheehy, running in Montana against Senator Jon Tester (D-MT), also has a “C” rating from Stand With Crypto.
The U.S. House of Representatives is set to vote next week on overriding President Biden’s veto of Staff Accounting Bulletin 121 (SAB 121), which requires firms custodying cryptocurrencies to record customer holdings as liabilities.
The resolution had previously passed the House with a 228–182 vote and the Senate with a 60–38 vote, supported by Senate Majority Leader Chuck Schumer. Overturning the veto requires a two-thirds majority in both the House and Senate, a daunting threshold that challenges proponents of the rollback.
Leadership and strategic efforts will be crucial to swing an additional 60 votes in the House to reach the 290 votes needed to override the veto. Industry advocates remain hopeful but realistic about the challenges ahead, given the short timeframe and the high threshold required.
If the veto is overturned, it would alleviate concerns among banks and crypto firms about their ability to manage digital assets securely.
Solana Price Prediction As Market Rebound: Can SOL Reach $150 by End of Weekend?
Currently trading at $142.4, Solana’s technical outlook paints a picture of cautious optimism. Despite a modest decline of over 1% in the past week, Solana has shown resilience, fluctuating between $122 and $150 and hitting a monthly low at $122 before a sharp rebound on Friday.
Solana Market Context and Broader Trends
Major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, have recorded increases of 4%, 3%, and 12%, respectively, in the past 24 hours. This resurgence has also sparked interest in the Solana-based meme coin, Dogwifhat, which has soared by over 23% during the same timeframe. This suggests growing momentum in the market as participants rally around these digital assets.
Solana Price Prediction – Source: TradingView
Solana’s technical indicators suggest a cautious yet optimistic outlook for its price movement. The Moving Average Convergence Divergence (MACD) shows a slight positive divergence from its signal line, hinting at potential bullish momentum in the near term. The Relative Strength Index (RSI) stands at 47, indicating that Solana is neither overbought nor oversold, providing a stable market condition that might appeal to short-term traders.
The Awesome Oscillator (AO) indicator currently sits at -7.26, hinting at underlying bearish pressures, while the Chaikin Money Flow (CMF) indicates a slightly positive value at 0.04, suggesting an inflow of capital into the market.
Possible Scenarios
1. Bullish Continuation: As Solana breach the key resistance level at $130, it signals an upswing in bullish behavior, potentially pushing the price towards $150. If the upward trend holds, Solana may even challenge the important $180 resistance mark.
2. Bearish Reversal: Increasing bearish dynamics could force Solana to seek support at the $130 level. A further drop might bring it down to the $120 support zone, reflecting a shift to a bearish market outlook.
Overall Outlook on Solana Price Prediction
The coming days are crucial for Solana. The breach of the $130 resistance indicates significant upside, with targets set at $150 and beyond. Conversely, a failure to maintain support at $130 could see the price retreat to the $120 level, marking a bearish turn.
