The Solana price is down 7% over the last 24 hours to $59 even as the total value locked (TVL) on the network increases.
This is contrary to SOL’s performance over the past week where it has recorded 9% gains in the past seven days.
The trading volume for the Layer 1 token has climbed 76.0% over the past week, moving in tandem with the TVL on the blockchain, which surged to an impressive $690 million on Dec. 3 signaling a watershed moment.
According to data from DeFiLlama, this is a 122% increase from the $310 low recorded in October, underpinning the escalating interest and unwavering confidence in Solana’s role within the decentralized finance (DeFi) sector.
Total Value Locked on Solana
Although this is way below the $10 billion all-time high reached in November 2021, it is the highest TVL increase in more than a year, indicating a strong and steady growth trend for the Solana ecosystem.
It should be noted that the latest increase in Solana’s TVL indicates a significant growth of almost 200% year-to-date from $211 million TVL recorded on Jan. 1. Solana’s TVL declined sharply following the collapse of FTX.
Solana Price at Risk of 15% Losses
The SOL price is trading in a third straight bearish session on the daily chart with the demand level at $55 providing immediate support. If the selling intensifies, Solana could drop below $55 toward $51 and later seek solace from the 50-day Exponential Moving Average (EMA) at $48. This represents a 15% and 17% declines respectively from the current price.
SOL/USD Daily Chart
Solana’s pessimistic outlook is supported by the downward movement of the Relative Strength Index (RSI). This oscillating indicator was moving away from the overbought region, dropping from 65 on Dec. 2 to the currency level at 57. This points to increasing selling pressure.
On the other hand, the EMAs were facing upwards. The fact Solana was moving above these moving averages indicated that the market conditions still favored the upside. Increasing demand from these areas could kickstart a recovery that could see SOL turn up from the current price with the first barrier emerging from the $60 supplier congestion level. Higher than that, Solana could climb to return to the range highs at $65 and $68 respectively.
Source: https://www.analyticsinsight.net/solana-price-prediction-slumps-7-in-24-hours-despite-the-tvl-ballooning-to-600m/