Solana (Sol) has recently shown that price movements have been limited despite a substantial accumulation of tokens. Prices are relatively stable in May, probably due to Altcoin overheating.
This stagnation is a sign of caution, but the market is optimistic and could lead to potential profits for Solana in the near future.
Solana Investors continues to accumulate
Over the past 10 days, Solana’s balance on the exchange has dropped by $2.2 million, worth around $381 million. This decline in supply indicates that investors are accumulating Solana during this period.
Continuous accumulation can be caused by a mix of factors, such as broader bull market sentiment, fear of missedness (FOMO), and expectations of future price increases.
This decline in supply reflects an increase in investor trust, with many choosing to hold SOL rather than selling it. As more investors accumulate tokens, the supply of exchanges will decrease, putting upward pressure on prices in the long run.
Solana’s overall market momentum shows signs of potential volatility. Technical indicators such as Bollinger bands reveal that the band is narrower.
This band’s toning is a classic signal of a potential aperture, and often precedes a surge in price volatility.
If squeezes resulted in a bullish breakout, Solana could see prices rise. In particular, the wider market shows positive momentum.
However, stenosis of the bollinger band also suggests that a period of integration may occur prior to critical movements.
Sol Price must occur
The Solana price has probably been sideways for much of May due to the token overheating in the previous few weeks. However, this period of cooling can create opportunities for bullish moves.
Solana could rise from the current consolidation stage as the broader market continues to show positive signals and the accumulation trend continues.
For $173, Solana is testing key support levels. To start the rally, Solana will need to secure $178 in support. If you break above $180 and succeed at $188, it could indicate an onset of an uptrend.
Successful breakouts above these levels indicate a further upward potential.
On the other hand, if Solana can’t maintain support at $178, it could fall below $168 and reach $161. Such decline invalidates bullish papers and suggests further negative side risks for tokens.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
