Solana Sees $120 Million Inflow Amid Bearish Signs: Can SOL Sustain Its Gains?
The post Solana Sees $120 Million Inflow Amid Bearish Signs: Can SOL Sustain Its Gains? appeared on BitcoinEthereumNews.com.
Recent developments in the cryptocurrency market have seen over $120 million bridged to Solana, signaling a renewed confidence in this blockchain network. This influx of liquidity comes as traders move significant amounts from Ethereum and Arbitrum, just as memecoins experience a resurgence. According to a source from COINOTAG, “The recent bridging activity highlights a pivotal shift that could enhance Solana’s market position.” Solana sees a $120 million liquidity influx as traders shift confidence; however, price analysis suggests challenges lie ahead for SOL. Solana’s Recent Liquidity Influx and Market Dynamics Over the past month, Solana has attracted more than $120 million from various competing blockchains, primarily Ethereum, which contributed $41.5 million. This trend follows a tumultuous period characterized by significant capital outflows due to high-profile scandals, notably the LIBRA memecoin situation in Argentina that affected investor sentiment. This return of liquidity is encouraging, yet it coincides with a broader market resurgence in memecoins, which have rallied sharply in recent weeks. Moreover, the increased activity in Solana comes after a phase where the network’s fees peaked at over $400 million in January 2025, sharply contrasting with the current environment where the fees are hovering around $22 million for early April. It raises questions about the sustainability of this new interest in Solana and whether it can match its previous performance. Technical Analysis: Challenges Ahead for SOL From a technical perspective, Solana is currently navigating a bearish trend on its daily chart. To reverse this trend, SOL must decisively breach the $147 mark on a daily close. Presently, the price struggles below the $140 threshold, with the 50-day exponential moving average acting as a significant resistance barrier. In addition, the behavioral patterns witnessed in the market, such as the recent formation of a bearish divergence in the RSI, indicate a potential correction phase…
Filed under: News - @ April 17, 2025 6:28 am