A few days after reaching a peak at $161, the crypto Solana (SOL) is taking a break in its recent rise. The flagship token of the high-performance blockchain ecosystem is experiencing a slight correction, raising questions about the sustainability of its upward momentum.
A measured decline after a sharp rise
After a meteoric rise, Solana (SOL) observes a strategic stopover. This brief correction, occurring in a context of high activity on the network and continued innovations, reflects the cyclical nature of the crypto market.
At the time of writing, SOL is trading at $156.37, up slightly by 0.58% over 24 hours. This moderate decline comes in the wake of an impressive rally that propelled the price to $161.
Several interdependent factors explain this pause momentary. First of all, the intense activity of the Pump.fun account played a decisive role. The liquidation of 122,250 SOL (approximately $18.9 million) over the past five days has placed significant downward pressure on the price.
Although this activity demonstrates the vitality of the Solana ecosystem, it temporarily saturated the market, causing a natural rebalancing of prices.
Furthermore, after three weeks of continuous growth, a consolidation phase was predictable and even desirable for the long-term health of the market. Investors, following the logic of taking profits, naturally reduced their positions, contributing to this temporary drop in the price.
Excessive network activity despite the correction
Solana continues to post impressive statistics despite the recent drop in its price. With 3.04 million addresses active daily, the blockchain is positioned at the head of the pack of the most used networks. This excitement can be explained in particular by the craze around crypto memes and the introduction of new protocols like Pump.Fun.
The launch of SOL liquid staking also helped attract new investors to the Solana ecosystem.
The intense activity on Pump.fun perfectly illustrates this boom. With revenue generated amounting to 773,617 SOL (approximately $120.68 million), the platform demonstrates the growing popularity of meme tokens on Solana.
Trading volume also shows an increase of 42.21%, signaling sustained trader interest and abundant liquidity. In addition, over the last 7 days, SOL maintains a notable increase of 8.84%, testifying to the resilience of the token in the face of this short-term correction.
The market remains attentive to the next movements of SOL. A move above the recent high of $161 could pave the way for further tests of resistance at $174 and then $186. Conversely, a decline below $154 could lead to a decline towards the $147 support.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
