The post Solana Crypto: Stablecoin Moves Spark ‘Extreme’ Volatility Risk appeared on BitcoinEthereumNews.com.

Solana’s crypto stablecoin market activity has surged dramatically, raising concerns about increased price volatility for its native token, SOL. The network experienced sharp fluctuations in Tether (USDT) trading, with a 137% spike in late February following a previous 61% decline. Analysts warn that this instability, combined with external factors like FTX-related token unlocks, could drive unpredictable price movements for Solana. Solana Crypto Price May See Sharp Swings Tether (USDT) trading on Solana crypto witnessed extreme fluctuations in February, indicating shifts in investor positioning. According to Mercuryo data, USDT trading volumes increased by 137% throughout the last week of February after experiencing a 61% decline in the previous week. The rapid rise in trading activity indicates traders are moving their assets as the volatile nature of the market may increase. According to Mercuryo’s CEO Petr Kozyakov, the observed trading patterns reveal how Solana’s platform may experience higher levels of market volatility. Kozyakov assessed that Solana enjoys efficient processing and large-scale capabilities, yet, its unpredictable market patterns suggest upcoming difficulties. The active use of decentralized exchanges Jupiter and Raydium increases trading dynamics by drawing substantial investor interest to Solana. Solana’s crypto price seems likely to experience significant price fluctuations because of this increased trading activity which causes traders to restructure their approaches. Market sentiment and liquidity undergo dramatic effects when these price movements occur. Stablecoin activity reduces market volatility and creates opportunities for SOL price changes during the following weeks. SOL Approaches Key Price Breakout Point According to its technical market signals, a significant phase for the Solana token price is imminent. Analysts using Solana Heikin Ashi hourly charts identify upcoming price movement potential through converging triangles. Analysts repeatedly point out that market conditions determine whether the price will move upwards or downwards. Crypto analyst Trader Tardigrade characterized the pattern because it…

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Filed under: News - @ March 21, 2025 4:27 pm