Solana’s native token, SOL, went through significant price fluctuations in June 2024. It closed at $144, reaching a high of $175 on June 5 and a low of $124 on June 24. The volatility was attributed to internal network issues and market conditions.
On July 2-3, SOL experienced an 8.5% decrease, testing the $140 support level and erasing the gains from the previous three days when it peaked at $154.80. During mid-June, SOL dropped to $142, marking a 23% decline over three months, while the broader cryptocurrency market lost 9% in the same period.
Despite these challenges, SOL saw a brief bullish trend at the end of June. This was triggered by VanEck’s and 21Shares’ filings for the first spot Solana exchange-traded funds (ETFs) in the U.S. on June 27 and 28. VanEck’s filing caused a 6% spike in SOL’s price, temporarily boosting market sentiment.
However, the impact of the ETF filings on the market was limited. The ETH to SOL ratio initially showed SOL’s outperformance but reversed after ETH’s ETF approval in the U.S. The impact on derivative markets also fizzled out, indicating a lack of sustained bullish demand.
On-chain data from Solana shows an increase in daily transaction volumes. The network processed 32.7 million transactions on June 1, rising to 43.8 million by June 30, a nearly 34% increase. However, new addresses joining the network showed signs of slowing.
The total value locked (TVL) within Solana’s ecosystem declined from $4.8 billion on May 1 to $3.4 billion by June 30, a decrease of roughly 29%. Despite this monthly decline, Solana’s TVL has grown 140% year-over-year.
Solana holds nearly 25% of the DEX market, with a total DEX trading volume of $38.4 billion in June, positioning it as a significant player in the decentralized finance space.
Technical indicators suggest a bearish outlook for Solana. The Simple Moving Average (SMA) in the 1-day timeframe shows a negative crossover, indicating increased bearish action. The Moving Average Convergence Divergence (MACD) also signals higher selling pressure.
Despite the recent decline, Solana remains above the crucial support level of the 200-day SMA. The key support level to watch is $128, and if the price stays above this level, the bullish trend may continue. However, breaking below $128 could lead to further declines towards the major support level at $87.
Solana’s price action has formed a symmetrical triangle, suggesting potential future movements. A bounce off the 200-day SMA support could result in a 22% surge, potentially reaching $164 in alignment with the triangle’s top trend line.
