Solana (SOL) has experienced a lot of volatility in the last week as it oscillated between major levels. It reached a local maximum of about $163.91 but then dropped quickly to around $140.65, marking resistance and support levels well defined at such prices in the graph below: At the time of publication, SOL is trading at $150.03— a 34.62% rise from its recent low.
Price Movements:
The trend represents a combination of upward and downward movements that show strong rebounding from the support line. This upward momentum indicates the potential of a retest to $163.91 resistance, failing which the price could actually range between support at $140.65 and a resistance zone around 163-164 in the near term.
Surge in Stablecoin Supply
Solana also registered a notable rise in stablecoin supply on its blockchain, up by more than 10% this week. The news is a bright spot for the network in an otherwise tough TVL season. Solana has struggled in this area historically compared to other major blockchains. The level of stablecoin flow is important because it shows non-crypto liquidity and the growing trust in the Solana ecosystem.
NX Finance launched its Solana-based leveraged yield aggregation platform, and the latest TVL data suggests that users are getting involved despite market declines. This is possible because Jupiter uses unique, leveraged yield strategies derived from the JLP pool that are staking up to $600M in value.
Solana is further propelled by DeFi participation via platforms like Jupiter and Meteora. Jupiter, a core DeFi player, has designed 40% of the total JUP token supply pro rata for airdrops with high annual percentage yields and potential future mass drops on Solana. Further, more potential for yield and future reward opportunities exist on the Meteora liquidity hub inside Solana.
Solana’s continued momentum is in part made possible by the over 10% increase of the stablecoin supply on its blockchain. The increased amount of stablecoins strongly emphasizes the rapid growth of confidence in Solana’s ecosystem. While $SOL prices have dropped, the increased supply of stablecoins and a high volume of on-chain activity continue to keep Solana’s price stable, with the opportunity for a surge in price shortly.