SOL Price Analysis: Solana Investors Stake $2B amid 20.4% Gains

Solana Price Analysis:

SOL price grazed the $160 level on Monday Oct 14, up 20.43% in the last 7-days. On-chain signals show Solana stakeholders are holding out more gains, moving SOL coins worth over $2b into long-term smart-contracts.

Solana Prints 20% Gains as $160 Resistance Wobbles

On October 10 2024, the global crypto market grew by more than $50 billion, propelled by positive figure in the latest China inflation report. Reports of slowing inflation and expectations of interest rate cuts in both the Chinese and US economies has sent crypto investors into a buying spree on Monday.

Amid the market-wide rally mega-cap coins like Solana (SOL), Bitcoin (BTC) and Ethereum (ETH) all printed daily timeframe gains in excess of 5% on Monday.

The SOLUSD daily chart above shows how Solana price rally peak around $157.8 at the time of writing on Oct 14. Zooming out, this brings Solana’s weekly timeframe gains to the 20.43% having traded as low $141.17 on October 3.

Interestingly, early-profit taking and bearish maneuvers from SHORT traders seeking to avoid a squeeze combined to repel the Solana price rally and avoid a breakout above the $160 on Monday.

In the coming days, the $150 support could be crucial for Solana price action as a breakdown below the psychological support could effectively truncate the rally.

However, with the next US Fed FOMC meeting less than 3-weeks away,  and minimal market FUD, majority of Solana bulls unlikely to enter a panic sell-off within the current market dynamics.

Hence the current Solana price correction phase could short-lived, especially if the bulls manage to hold the $150 support in the near-term.

Solana Investors Stake $2B SOL Despite 20.4% Unrealized Profits

Solana price retraced 2% towards $155 after failing to breach the $160 mark on Monday Oct 14. However, market indicators suggest Solana’s key stakeholders are making strategic moves to hold-out for another leg-up.

The chart below, culled from StakingRewards.com tracks real-time changes in total SOL coins staked in Proof-of-Stake (PoS) smart contracts.

Over the past 30 days, there has been a net increase of 10m SOL staked on the Solana network, worth $2b at the current market rate of around $156 per coin.

Notably, as prices surged 20.43%, nearly 3 million SOL were staked in the last 7-days, bringing the total SOL staked value to a 90-day peak of 392.7 million SOL at the time of publication on Oct 14.

When staking deposits increase during a price rally, is signals dominant bullish sentiment among current holders for two main reasons.

First, it indicates that Solana’s key stakeholders have been depositing more coins in the staking contracts, rather than seek short-term profit taking opportunities, despite holding 20.43% unrealized gains.

More so, market-wide rallies often tigger an unusual surge in both on-chain activity and trading volumes. Like every PoS network, this increased staking is crucial for enhancing the network security, building resistance to attacks and outages, the latter of which has plagued Solana perennially during recent rallies.

Hence, dovish macroeconomic expectations across China and US economies, and the $2 billion surge in Solana staking deposits suggest a continuation of the bullish momentum. If current market dynamics persist, Solana price will likely make another major push to reclaim the $160 territory as the week unfolds.

Solana Price Prediction: Bulls Must Hold $150 Support

From a technical perspective, Solana (SOL) appears to be entering a critical consolidation phase after posting a 20.43% rally in the last week. The price surged to $157.8 on Oct 14, narrowly missing the $160 psychological barrier before facing a modest retracement to $155.

This is indicative of short-term profit-taking, as the Relative Strength Index (RSI) stands at 61.69, suggesting mild overbought conditions. Despite this, SOL remains in a strong uptrend, trading well above the 20-day moving average of $147.23, signaling continued bullish momentum.

Key support levels to watch include the $150 psychological level, which corresponds with the lower band of the Bollinger Bands at $147.23.

If the bulls manage to defend this zone, Solana could stage another rally towards $160 and beyond. A break above this resistance could open up targets near $165, which would align with the top of the Bollinger Band and coincide with historical resistance zones seen in mid-September.

Failure to hold $150, however, could see the price slip toward the next support at $144, which is also a key Fibonacci retracement level from the recent rally. With the upcoming FOMC meeting and macroeconomic developments likely to play a role, Solana bulls will need to monitor these levels closely to maintain upward momentum.

In summary, holding the $150 support will be crucial for a continuation of Solana’s bullish trajectory, with potential upside targets sitting at $160 and $165. However, a break below could see bears retest lower support levels, dampening the current rally.