Solana price is stuck in a narrow range – Breakout or plummet?

The price of Solana (SOL) has decreased by nearly 36% in the past 30 days, indicating that selling pressure is still dominating the market.

With a total locked value of (TVL) fluctuating below $7 billion and mixed signals from whale activity, investors are watching for the next move.

The total value locked of Solana is still under $7 billion

According to data from DeFiLlama, the total value locked (TVL) on Solana currently stands at 6.72 billion USD.

As of February 23, this index has not yet been able to recover the 10 billion USD mark, indicating that the capital flowing into Solana's decentralized finance (DeFi) ecosystem is still limited.

The highest TVL recorded this year was 14.24 billion USD on January 18, but it has gradually declined since then.

Although it maintains a strong position in the DeFi sector, the decrease in TVL indicates the cautious sentiment of investors towards this ecosystem.

Source: DefiLlamaOn-chain data from Glassnode shows a slight increase in the number of Solana whales – addresses holding at least 10,000 SOL.

Specifically, the number of whales has increased from 5,008 to 5,031 in just two days, but it still hasn't been able to reach the peak of 5,053 recorded on March 3.

These large investors have the ability to significantly influence market trends, and their continued accumulation of SOL could be a sign of confidence in the recovery momentum.

However, the current data reflects hesitation, as the number of whales has not yet returned to previous high levels.

Typically, an increase in the number of whales is a signal of strong confidence from investors, but given the current situation, the market seems to still be in a phase of transition and trend exploration.

Price Movement of Solana: Where Will SOL Go?

If SOL cannot maintain above the support level, the price risks dropping further to $112, indicating that the correction still prevails. Conversely, if it surpasses the $131 threshold, SOL could extend its rally to $152.90, and even aim for $179.85 if bullish sentiment continues to increase.

The coming days will play a decisive role in determining the main trend of SOL, as the price remains constrained within the important resistance and support zones. Currently, the Total Value Locked (TVL) is still struggling to recover, while whale activity indicates selective accumulation.

Daily SOL/USDT chart | Source: TradingViewThe question arises: Will SOL break out of this range or continue to weaken? This largely depends on the overall market trend and investor sentiment.

The positive sign is that the TVL is stabilizing and the inflow of large investors is showing signs of returning, signaling the potential for a trend change. However, buying pressure is still not strong enough to confirm a clear recovery. Traders should closely monitor support and resistance levels to prepare for upcoming fluctuations.

Disclaimer: The article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

• Solana futures ETF enhances institutional acceptance, although the inflow of funds is limited.
• Volatility Shares launches two Solana futures ETFs

SN_Nour

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width: 728px; height: 90px; } }