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Cryptocurrency News Articles
Solana (SOL) Takes a Breather After Reaching a Peak of $161, Raising Questions About the Sustainability of Its Bullish Momentum
Sep 30, 2024 at 08:05 pm
A few days after reaching a peak of $161, the Solana (SOL) cryptocurrency is taking a break in its recent rise. The flagship token of the high-performance blockchain ecosystem is experiencing a slight correction, raising questions about the sustainability of its bullish momentum.
After reaching a peak of $161, the Solana (SOL) cryptocurrency is experiencing a slight correction, raising questions about the sustainability of its recent rise.
A few days after reaching the milestone, SOL is taking a break in its recent ascent. The flagship token of the high-performance blockchain ecosystem is experiencing a minor correction, as the network activity and innovations are countered by a cyclical nature of the crypto market.
At the time of writing, SOL is trading at $156.37, showing a slight increase of 0.58% over 24 hours. This moderate pullback comes in the wake of an impressive rally that had pushed the price up to $161.
Several factors are interplaying to create this temporary pause. First, the activity of the Pump.fun account has been particularly impactful. The liquidation of 122,250 SOL (around $18.9 million) over the past five days has put strong downward pressure on the price.
While this activity showcases the vitality of the Solana ecosystem, it has also led to a market saturation, causing a natural price rebalancing.
Moreover, after three weeks of continuous rise, a consolidation phase was expected and even beneficial for the long-term health of the market. Investors, following a logic of taking profits, have naturally lightened their positions, contributing to this temporary price drop.
Solana network activity booms despite price correction
Despite the recent price decrease, Solana continues to boast impressive statistics. With 3.04 million daily active addresses, the blockchain ranks among the most heavily used networks. This activity is largely attributed to the excitement surrounding meme cryptos and the introduction of new protocols like Pump.Fun.
The launch of liquid staking SOL has also played a role in attracting new investors to the Solana ecosystem.
The intense activity on Pump.fun is a prime example of this boom. With revenues generated reaching 773,617 SOL (around $120.68 million), the platform showcases the growing enthusiasm for meme tokens on Solana.
Trading volume has also seen a 42.21% increase, indicating sustained interest from traders and ample liquidity. Additionally, over the past 7 days, SOL has still managed to secure a remarkable increase of 8.84%, highlighting the token’s resilience amidst this short-term correction.
The market will be keeping a close eye on SOL's next moves. A breakout above the recent peak at $161 could lead to further resistance tests at $174 and then $186. On the other hand, a drop below $154 could result in a pullback towards the support of $147.
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