Solana (SOL) Price Analysis: Staking Inflows Fuel Rebound Hopes, Can SOL Reclaim $250?

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On January 11, Solana (SOL) strengthened above its $185 support level, with buyers intervening to prevent a 20% loss in the weekly chart. Notably, as the market dipped, deposits for SOL staking saw significant growth. This raises the question: Could SOL be reaching a temporary low point?

Solana (SOL) Price Stabilizes at $185 as Staking Inflows Surge

This week, Solana’s price fluctuations were quite erratic, reflecting the unstable conditions in the wider cryptocurrency market. The intense selling pressure arose primarily due to economic concerns on a global scale and a U.S court’s verdict permitting the Department of Justice to sell off approximately $6.5 billion in Bitcoin that was seized from Silk Road.

Between January 5th and January 9th, the value of Solana plummeted by a significant 15.7%. This steep drop coincided with a wider sell-off in the altcoin market, as increasing margin calls exacerbated pessimistic feelings among investors.

On Thursday, the Solana (SOL) price found some resistance at around $180, as fatigue among sellers kicked in and traders started preferring asset staking. At the moment of writing on January 11th, SOL price has slightly bounced back to recover the $186 level, suggesting a potential formation of a local base while investors eagerly wait for the next significant event that could drive the market.

Investors Staked 1.4 Million SOL In The Last 5-days

The price holding steady above $180 has fueled hope that Solana might stabilize between $180 and $200 for a while. Moreover, the increased flow of staking investments into the Solana network, noticeably rising over the last few days, strengthens the idea of a possible rebound.

Indeed, as shown on the graph beneath, the StakingRewards chart monitors daily fluctuations in the worth of Solana (SOL) tokens locked within staking agreements. This data offers insights into the temporary opinions among significant Solana stakeholders and network validators during a particular market period.

On January 5th, the amount of Solana tokens locked in staking totaled approximately 388.8 million SOL. With Solana’s price falling under external strain, a significant number of validators on the Solana network have become less inclined to offload their holdings.

Over the last seven days, an additional 1.4 million SOL have been invested in staking agreements, raising the total staked amount to approximately 390.2 million SOL as of January 11 when this information was released.

Investors holding Solana have placed around $250 million into their accounts, given the recent decrease in coin prices by over ten percent during the last week.

For two significant factors, the upcoming price trajectory of Solana appears optimistic. To begin with, by locking up $250 million in SOL for staking, there’s a decrease in immediate market availability, thereby alleviating the pressure to sell.

As a researcher, I’ve noticed an interesting trend: Instead of cashing out at these lower prices, a substantial number of Solana (SOL) holders appear to be strategically choosing to generate passive income by staking their tokens, rather than succumbing to the short-term losses brought on by the bearish market conditions.

With the overall market feeling uncertain, traders are anxiously waiting for a clear positive trigger to propel Solana (SOL) further and bring about a stronger breakthrough in its price movement.

Solana Price Forecast: Clearing $200 Hurdle Could Trigger $250 Retest

With a slight air of caution but overall optimistic, the Solana price forecast suggests an immediate barrier around the $200 mark, as evidenced by several past instances where its price was rejected in this vicinity.

The 200-day Simple Moving Average (SMA) sits at $197.09, aligning with a potential resistance level. If this barrier is surpassed, it might spark a push towards $250. At the moment, the Relative Strength Index (RSI) stands at 41.24, showing a slight downward momentum, but it’s close to its median line of 47.55. This proximity suggests a possible shift in bullish sentiment if buyers regain their strength.

Instead, not meeting the target of $200 could potentially lead to more decreases for SOL. The red box indicates a potential drop of 15.59% over two days, which might take it down to approximately $172.48. This level aligns with the 50-day Simple Moving Average (SMA), suggesting possible support. However, the negative volume delta of -90.34K indicates a lack of strong buying interest, causing concern about continued upward trends.

Essentially, reaching $200 could pave the way for a potential upward trend towards $250, but failing to do so might lead to a downtrend towards $172.

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2025-01-11 16:04