Solana price has recoiled in a narrow range in the last month. SOL held between the key support and resistance levels at $75 and $93 in this period. It remains 66% below its highest point in September last year, and this trend may continue after forming a bearish flag pattern.

Solana price has held in the past four weeks despite the network having some of the best fundamentals in the crypto industry.

One of the top catalysts is that spot SOL ETFs have continued adding assets this month. These funds added over $21.5 million in assets this month. 

They have added assets in the last six consecutive months, bringing the cumulative total to $955 million. They hold $815 million in assets, with Bitwise, Grayscale, Fidelity, and VanEck having the most assets.

Notably, most of the assets are held by institutional investors. Data shows that the biggest holders of Solana ETFs are companies like Electric Capital Partners, Goldman Sachs, Elequin Capital, SIG Holdings, and Multicoin Capital Management. 

Increased accumulation by investors is a sign that they expect the prices to continue doing well over time.

Meanwhile, data shows that Solana has become the fastest-growing network in the crypto industry. The network handled over 1.9 billion transactions in the last 30 days, while its active addresses and fees have jumped in the same period. 

More data revealed that Solana’s role in the real-world asset (RWA) tokenization have continued soaring. According to TokenTerminal, Solana has continued growing its market share in key areas. 

Solana holds over $200 million in tokenized stocks, higher than Ethereum’s $198 million. It holds over $1.7 billion in tokenized assets, making it the fourth-biggest chain in the network after Ethereum, BNB Chain, and Liquid Network. 

Solana is also becoming a major player in the stablecoin industry. Data shows that the supply of stablecoins on Solana has soared to $17 billion. Its stablecoin transactions soared to over 264 million in the last 30 days, while the transaction volume has soared to over $873 billion. 

Solana is aiming to continue growing in the payment industry through Solana Pay. It is an open, free-to-use payment framework available to businesses.

The daily chart shows that the SOL price has slumped in the past few months. It plunged from $253 last year to the current $86. It has remained below the 50-day moving average and the Supertrend indicator.

A closer look shows that the coin has formed a horizontal channel whose support and resistance levels are at $78 and $93. It has also formed a bearish flag, which is made up of a vertical line and a descending channel. 

This pattern often leads to a strong bearish breakdown. Therefore, the most likely scenario is where the coin stages a bearish breakdown.

More downside will be confirmed if the coin drops to the lower side of the channel at $75. A move below that level will point to more downside, potentially to the psychological level at $50.

On the flip side, a move above the upper side of the channel will invalidate the bearish outlook and point to more downside.

The post Solana price prediction: risky pattern forms despite solid metrics appeared first on Invezz

Bitcoin price in Telegram @btc_price_every_hour

4 +