Bitcoin is again in the $63,500 region, and a significant portion of altcoins continue the day with losses. LUNA and related tokens are on the rise because Do Kwon will suspiciously serve his sentence at home. It seems like a logical move for the Terra scammer to flee to Montenegro. But what about Solana (SOL)? What’s the latest there?
Latest Status of the Solana (SOL) Network
For those who bought at $8.50, SOL Coin offered a selling opportunity above $200, and bold investors who bought at the bottom made significant gains. However, we then saw the price start to fall due to the impact of BTC price fluctuations and the weakening of the Solana meme coin excitement.
The RSI, which was signaling overbuying for Solana, has dropped to 48, and now the demand has balanced out. From this point, a move towards extreme overselling at 30 or a return to overbuying is expected. While the price remains stable, the total value locked in the Solana network has exceeded $4 billion for the first time since April 2022. It is positive that we have moved from days when we wondered if it could stay above $1 billion to now discussing $4 billion.
The increase in TVL reflects the interest in DeFi protocols on the network, but when we compare the current price with the historical peak of $10 billion, there is still a bubble. Looking at user activity on the network, DeFi transactions set a new record on March 14 with 7.86 million. Since March 8, DEX platforms are hosting an average of 6 million transactions daily due to the excitement of newly launched Solana tokens.
Since January 2024, the number of unique users on the network has also been increasing. The Solana network started the year with 717,000 users and saw 2 million unique users daily on March 17. Yesterday, this number had just fallen below 1 million. Looking at all these data, we can say that the consolidation process may have started.
SOL Coin Price Prediction
When the price crosses below long-term averages like the 20 EMA and 50 EMA, it usually indicates the start of a consolidation process. This is also supported by the detailed network data in the first section. So, there may not be significant movements for SOL Coin in the short term. This means the price will likely move within a narrow range for a while.
If a price correction occurs, the main target for SOL Coin is $161, with a support level of $137 for short-term rapid declines below that. If the consolidation phase ends and the direction turns upward with a strengthening BTC price, we could see a return to the $205-$210 range. This would be the main stop before $260.
