Price analysis

Solana Price Holds Above $180 Despite Recent Volatility and SEC Legal Updates

Published

2 months ago

July 30, 2024

Solana price has experienced significant fluctuations, showing a notable upward trend. The token has been consistently hovering above the $180 support level after breaking through this threshold earlier in the week. This movement represents a robust recovery from its previous position, which saw the token navigating lower support levels.

Solana has peaked at around $193 this week, surging by more than 3%, demonstrating strong market momentum and investor confidence. However, since then, it has experienced a slight pullback, reflecting the typical volatility seen in cryptocurrency markets

Solana Price Fluctuations and Recent Performance

The SEC recently updated its legal action against Binance, excluding Solana from its previous claims identifying certain cryptos as securities. This revision was filed on July 30 in a joint status report with the U.S. District Court for the District of Columbia.

This adjustment aligns with a court’s earlier decision, which concluded that secondary market sales of Binance’s BNB tokens are not securities transactions. This change might alter the U.S.’s regulatory landscape and influence the forthcoming launch of exchange-traded funds based on Solana.

As of the reporting time, SOL price is trading at $180.73, with a slight decrease of 2.74% during the U.S. trading session. Over the past 24 hours, the layer 1 crypto has fluctuated between a low of $179.30 and a high of $187.30. The 24-hour trading volume for Solana has reached $2.9 billion, indicating significant activity in the market.

Solana Price Holds Above $180 Despite Recent Volatility and SEC Legal Updates — Solana Price Chart| Source: TradingView

The technical indicators of Solana reveal a consolidation pattern on the 4-hour chart, as observed on the OKX exchange. The Moving Average Convergence Divergence (MACD) is in the bearish zone, with the MACD line at 0.26, below the signal line of 1.68.

However, the histogram has shrunk, suggesting a decrease in bearish momentum, which may hint at a possible reversal or stabilization in the short term. The Relative Strength Index (RSI) stands at 37, positioning Solana in neutral territory but leaning towards oversold conditions.

SOL price prediction is facing a strong rejection at the $193 level; if bullish momentum mounts, pressure could drive the price toward $200 and potentially up to $250 in the next bullish run.

TVL Surge

According to DefiLlama, Solana has reported substantial activity in its financial ecosystem. The platform’s total value locked (TVL) stands impressively at $5.4 billion. The market capitalization of its stablecoins is also robust, amounting to $3.2 billion.

In terms of transaction fees, Solana has generated $1.88 million in the last 24 hours alone, contributing to revenue of $940,009 during the same period.

The 24-hour trading volume on Solana price has surged to $1.589 billion, with inflows totaling $4.15 million, underscoring the network’s continued investor confidence and financial health.

Support holds at $170, which is crucial for maintaining the current price structure. However, if bears gain more control and selling pressure increases, the price might drop to $160, breaking below the support. If the bearish momentum continues, further decline could be seen, potentially lowering the price to $150.

Frequently Asked Questions (FAQs)

The SEC’s exclusion of Solana from its securities claims has positively impacted investor confidence, potentially influencing Solana’s market performance.

Solana’s TVL, which is $5.4 billion, indicates substantial activity and investor confidence, which can positively influence its price and market stability.

The current support level for Solana is $170. Maintaining this support is crucial to avoid further declines.