Solana (SOL) Price Prediction: SOL Remains a Core Asset Despite Recent Market Volatility

Despite recent market volatility, including the return of extreme fear across the broader crypto market, Solana remains a core asset for many long-term investors.

Solana continues to be one of the most efficient and robust blockchain ecosystems in the crypto landscape. Despite recent market volatility, which has brought back extreme fear across the broader crypto market, Solana remains a core asset for many.

Solana Peaks At $127 Billion In Market Cap

At its peak, Solana reached an impressive price of over $294, boasting a market cap that surpassed $127 billion. Although the asset has since lost nearly 50% of its value, it still holds immense potential, especially considering its scalability, high transaction throughput, and extensive ecosystem of decentralized applications and NFTs.

With the current price hovering around the $120 mark, this level is seen as a potential solid entry point for new investors.

Solana (SOL) price chart | Source: TradingView

suggesting that it could be a good time to start a position in the asset, which has also recovered rapidly from the March 2023 lows.

However, those who held Solana through the lows of the previous cycle might have reaped even more rewards.

From its lows of just $1 in December of a previous cycle, Solana rallied to deliver returns of 121x for those who held through the volatility, with peak gains hitting close to 300x.

Even a more conservative timeframe would have yielded an extraordinary 250x gain in under a year, illustrating its explosive potential during bullish phases.

Yet, it’s also noted that Solana’s total value locked (TVL) tends to surge primarily during phases of meme coin mania.

A vast majority of this liquidity influx tends to dissipate as the speculative hype fades, suggesting the challenge Solana faces in regaining previous highs like $125 billion in market cap. A return to such levels would require fresh bullish momentum and significant liquidity entering the market.

Solana: Next Technical Levels

Solana appears to be at a crucial technical juncture, having seemingly broken out above the key resistance range between $121 and $123. This zone, previously a significant area of balance, now serves as a critical test for price strength.

Moreover, the asset has moved above its 30-day VWAP (Volume-Weighted Average Price), which is often encountered as dynamic resistance. Breaking above this indicator suggests the potential for continued upward momentum, especially with a small fair value gap in the current price action likely to be filled.

Despite the weekend’s generally lower trading volume across most altcoins, Solana’s volume remains relatively stable, showing signs of resilience. Additionally, brief moments of strength were seen in Solana ecosystem tokens like $JUP, $MEW, and $POPCAT, indicating renewed investor interest.

On-chain metrics such as DEX trading volumes have also improved over the past week, showing activity rebounding from March lows.

However, broader market volatility—driven by external factors like the stock market and volatility index—casts doubt on the sustainability of this breakout, especially during a weekend.

There are also concerns about elevated leverage and remaining imbalances around $114–$115, which could lead to a pullback in the short term.

While the potential exists for further upside towards $128–$129, a more likely scenario may involve a temporary decline to reset leverage and fill gaps before resuming a sustainable bullish trend.

Overall, while the short-term outlook for Solana holds promise, caution is advised given the broader market conditions.

Next-Gen Layer-2 Projects Like Solaxy Are Building a Stronger Solana Network

Beyond Solana’s core ecosystem, new developments are emerging that aim to expand its capabilities and introduce innovative solutions. Among these projects, Solaxy—a Layer 2 solution designed to address some of Solana’s known pain points such as network congestion and failed transactions—is garnering attention.

Solaxy boasts impressive staking rewards at 136% and has already raised nearly $30 million, showcasing significant community interest and participation in the project.

Solaxy’s momentum isn’t solely fueled by hype—it’s underpinned by well-structured tokenomics. The token, $SOLX, has a capped supply and is being used to drive the project’s development and community engagement.

The distribution is thoughtfully planned: 20% allocated to the treasury, 15% for marketing efforts, 25% dedicated to rewarding the community, 10% set aside for exchange listings, and a substantial 30% committed to continuous development.

It’s being positioned as a project that enhances scalability and future-proofs Solana’s blockchain infrastructure. With a capped supply of 138 billion tokens, the project is still in its presale phase, with major developments and listings on the roadmap.

Solaxy recently advanced its infrastructure by integrating a new sequencer from the Sovereign SDK, enabling support for soft confirmations. This enhancement allows users to receive faster preliminary validation of their