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Like Bitcoin, Ethereum, and other top altcoins, Solana remains under significant selling pressure. While the bulls are fighting for momentum, $160 is emerging as a local resistance level for traders to watch out for.
Despite rising momentum in September, Solana buyers did not raise prices above this line. At the time of publication, there is a double top spot, and even one reviewer on X notes that Solana has done better than other platforms, posting sharper Net penetration.
Solana Earned Over 800 Million in Revenue in Three Months
Unlike Ethereum, Solana is a modern blockchain with very high scalability. The platform can process thousands of jobs every second, translating to low fees, and thus, many projects choose to run on the network so that the user experience remains unaffected. The events of the past three months, which saw the influx of funds to Solana, reinforce this position.
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To put the numbers, Solana has registered more than $800 million in net flows. This cash injection is more than double what the OP Mainnet, Ethereum layer-2, accepted and in addition Sui, another scalable blockchain, launched three months ago. And it’s more than Base and Starknet–two popular Layer-2 of Ethereum, posted, and surpasses what Avalanche and BNB Chain have achieved.
It is interesting that during this period, Arbitrum, Ethereum layer-2 and the biggest of all, Linea, Blast, and Bitcoin saw the exit. Despite being the largest platform for smart contracts, Ethereum posted a massive outflow of nearly $800 million.
It remains to be seen what could trigger Ethereum’s exit while promoting capital in Solana. While the variation in on-chain costs could be a factor, the continued dumping of ETH in Q3 2024 could have caused the exit. By local standards, ETH is down 35% from its Q3 2024 highs, while Solana is only 25% from its July highs when it rose to around $192 before retreating.
Will SOL break $160?
Even though Solana attracts a lot of money, the coin remains under selling pressure. The area line at $160 needs to be breached convincingly for the rally seen in the second half of 2023 to continue. Further gains will see Solana float to $190 and possibly break out of the current range.
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However, there may be storms. If Bitcoin fails to recover, it could drag down altcoin markets, including Solana, too. At the same time, there are concerns that the upcoming FTX token distribution will have a negative impact on SOL prices.
Moreover, according to Token Unlocksthe team plans to issue tokens on December 26, 2024. More than 66,000 SOL will be released every day for a year.
Insert image from DALLE, chart from TradingView
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