- Solana has recorded an explosive increase in the stablecoin flows.
- SOL consolidating around 50-day SMA could result in a potential 10% gain.
Solana [SOL] A massive inflow of stablecoins has been recorded, leading market analysts to believe that SOL will soon be able to moon based on historic data.
According to a pseudonymous observer GumshoeThe recent surge in stablecoin flows was an indication of a potential SOL rally.
‘SOL pumped hard in the last three times we had a SUDDEN increase in stablecoins. The last time it happened, an SOL ETF was applied for hours after.
Analysts also suggested that this information could have been insider knowledge for a future update, which could affect SOL’s stock price.
Source: X/Gumshoe
Gumshoe reports that SOL’s rise above the $120 and $70 levels occurred after an inflow of stablecoin. According to DeFiLlama, the latest surge occurred on 9th of July and was worth more than $260 million. data.
The day was also the same as CBOE (Chicago Board of Options Exchange’s) announcement of VanEck’s and 21Shares’ SOL ETF Plans on the Exchange.
The network has recently been tested, apart from speculations about the Solana ETF. milestone Firedancer is its third client validator, and has been hailed as the game-changer for the ecosystem.
The confirmation of the SOL ETF by CBOE, and the Firedancer Update could have been the key catalysts that triggered SOL’s FOMO. This might also explain the surge in stablecoins.
What about the SOL price chart?
SOL price action
TradingView Source: SOL/USDT
SOL made a modest gain of 1% on the 9th, as it consolidated around $141 – a major resistance level. It is interesting to note that the SMA 50 (Simple Moving Average), was also near the resistance level.
CMF (Chaikin Money Flow), which is a measure of money flow, confirmed that SOL was receiving massive amounts. This could indicate investors were taking fewer risks. SOL was able to consolidate at the 50-day SMA, and target $155, or a potential 10% gain.
The RSI was at a neutral level and flat, meaning that there wasn’t a strong purchasing pressure pushing SOL ahead.
Since the 8th of July, traders have been going long SOL at a rate of 49.6%. This percentage has now dropped to 47%. SOL could have a delayed recovery if this trend continues. Bitcoin [BTC] Recent losses can be reversed
Coinglass
There is another market analystBased on historic patterns projected SOL may reach $2800 over the long-term.
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Source: ambcrypto.com
