Solana Price Analysis: Solana Staking Hits $50 Billion after VanEck’s SOL ETF Filing

Solana Price Analysis After VanEck ETF Filing

Solana price has retraced toward $140 on June 29, after VanEck’s ETF filing drove it above $151 on Thursday, June 27. On-chain data shows that Solana Stakers have now increased their deposits to 376.9 million SOL. Will this spark a SOL price breakout?

Core Solana Stakeholders Remain Bullish Amid Testy Market Conditions

The resilient bullish stance observed among core Solana stakeholders is another vital on-chain metric pointing towards an imminent SOL price resurgence.

While the Solana price has underperformed in the past amid intense market volatility, Solana stakers and node validators have maintained a dominantly optimistic stance.

The chart below, culled from StakingRewards.com —a staking data aggregator platform, represents real-time changes in the amount of SOL coins currently deposited in dedicated smart contracts for passive income and to fortify the Solana blockchain network security.

As seen above, Solana stakers held a total of 368.8 million SOL in smart contracts when the market downswing began on May 20.

But since then, rather than join the selling frenzy amid the broader crypto market FUD (Fear, Uncertainty, and Doubt), they have grown their staking deposits to 375.3 million SOL at the time of publication on June 29.

Effectively, the Solana node validators have staked an additional 6.5 million SOL, valued at approximately $884 million within the last 30 days, to bring their total staking value to $50.1 billion.

This shows Solana core investors have opted to tide over the bearish market phase by staking their coins for passive income while holding out for future gains.

When stakers deposit more coins into staking contracts during a bearish market phase as observed on the Solana trend chart above, it suggests that the core investors are maintaining a positive outlook on the asset’s long-term price prospects.

Also, albeit temporary, staking effectively reduces the short-term market supply of an asset, cooling the selling pressure while increasing the probability of an accelerated price breakout when the market sentiment flips bullish.

More so, considering how SOL tokenomics has triggered a 0.22% decline in the inflation rate during that period, Solana stakers are now incentivized to stake even more tokens in the days ahead.

These key factors reflect how Solana core investors are positioned to navigate the current bearish crypto market trend, mitigating book-value losses with passive income, while holding out for the next recovery phase.

Solana Price Forecast: Holding $140 Could Spark Major Rebound

Solana’s recent price action shows a strong potential for a bullish rebound if it manages to hold above the critical $140 support level.

The Auto Fib Extension levels indicate that the $141.52 mark is significant, and maintaining this level could pave the way for further gains. The chart highlights a 24.90% increase over the past five days, indicating growing bullish momentum.

The immediate resistance level to watch is around $147.77, aligning with the 0.786 Fib extension. A successful break above this resistance could see Solana targeting the next significant resistance at $153.72.

Beyond that, the key psychological level of $160 could come into play, marking the 0.618 Fib extension. A move above these levels would strengthen the bullish outlook, potentially pushing the price toward the $175.56 mark, where substantial resistance lies.

On the downside, if Solana fails to hold the $140 support, it may find the next major support at $130.60, as indicated by the 1.618 Fib extension level.

This level has previously acted as a strong support, and a breach below it could trigger further declines, possibly towards the $102.81 level, marked by the 2.618 Fib extension.

However, the current bullish momentum suggests that a rebound is more likely if the $140 support holds.