SOL Maintains Multi-Year Trendline as $450M Flows In

TLDR

• Over $450 million in assets were bridged to Solana in April, with Ethereum contributing more than $300 million
• Solana dominated revenue among Layer 1 and Layer 2 chains, generating $88 million (41% of total revenue)
• SOL price ($147.50) sits above critical support at $143.50 with major short liquidations clustered around $147.50
• Technical analysis shows a bullish pattern with SOL trading above its multi-year ascending trendline since 2020
• A whale recently unstaked 120,197 SOL ($17.55M) and moved it to Binance, potentially creating selling pressure

Solana has experienced a surge in bridged assets, with over $450 million flowing into the network during April. Ethereum led this migration, contributing more than $300 million of the total bridged assets.

This influx of capital highlights growing user confidence in Solana’s ability to handle large-scale operations while maintaining cost effectiveness.

The cross-chain activity has boosted Solana’s position in the cryptocurrency landscape. Users and developers are showing increased interest in Solana’s decentralized finance (DeFi) and dApp ecosystem.

This attention has translated into real revenue. Solana generated over $88 million in revenue, establishing itself as the dominant platform among all Layer 1 and Layer 2 chains.

The blockchain captured 41% of total revenue across these networks, demonstrating its growing market power.

Price Action and Technical Patterns

SOL currently trades at $147.50, recovering after a brief dip below the $143.50 support level. Bitcoin’s recent 3% surge helped push SOL back into the green.

The price sits in a critical zone with liquidation data showing interesting patterns. A large pool of long positions is clustered near $143.50, while substantial short liquidations stack higher, mainly around $147.50.

This creates a potential “liquidation magnet” effect. If prices move above $145, it could trigger a cascade of short liquidations, potentially driving SOL toward the $150 mark and beyond.

From a technical perspective, SOL continues to trade above its multi-year ascending trendline, a support level that has held since 2020.

The coin has formed what appears to be an ascending triangle pattern on the monthly chart, typically considered a bullish formation.

SOL has also established an inverse head and shoulders pattern on the daily chart. This structure is a bullish reversal pattern that forms at the end of a downtrend, suggesting a potential return to an uptrend.

The coin has already broken above the neckline at $123.49, validating the pattern.

Market Dynamics and External Factors

The recent price action comes amid broader market developments that could impact SOL’s trajectory.

China’s central bank announced plans to inject 1 trillion yuan (approximately $138 billion) in liquidity into the economy. Historically, such easing measures have benefited cryptocurrency prices.

The Federal Open Market Committee (FOMC) meeting outcome will also play a crucial role in determining SOL’s next move. Previous rate cuts have fueled SOL rallies, as seen following the 50 basis point cut in September 2024.

Market expectations suggest a 97% likelihood that the Fed will maintain current interest rates, with only a 3% probability of a rate cut. If a surprise cut occurs, SOL could target the $180-$200 range.

Whale Activity and Short-Term Outlook

A notable development that could impact short-term price action is recent whale activity. According to Onchain Lens, a whale unstaked 120,197 SOL worth $17.55 million and transferred the funds to Binance.

This unstaking came after a six-month lock period. Despite earning 3,802 SOL in rewards, the whale still faces a loss of $7.8 million on their position.

Such large-scale movement to an exchange often indicates selling intent, which could introduce downward pressure on SOL prices.

SOL has been consolidating between $143.50 and $154 for the past two weeks. A breakout above $154 could trigger a 15% rally toward $180.

Conversely, if SOL drops below $143.50, it might fall to $132 in the short term, with $120 representing the strongest historical support.