Solana's potential price surge aims for $180 and beyond, predicting a bullish breakout.
Rewritten Article
Title: Solana's Hidden Gold Mine: Is It Time to Stake Your Claim?
Authors: Ritika Gupta, Jacob Thomas
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It seems like the Solana [SOL] faithful took a solid hit on the 11th of May, watching their tokens plunge by 2.64%. But fear not, dear traders! Behind the scenes, a different story was unfolding.
AWHOPPING 347.55% spike in realized profits suggested that the old guard was unloading their SOL while the going was good. With the exits clogged and the bears smelling blood, a vicious $7.86 million long squeeze took place, exterminating overexposed positions.
The good news? This liquidity sweep cleared the decks and left open a prime entry point for the short-term masochists. Now, governance is in the hands of the bulls.
If they decide to create a supply shock, these new shorts could find themselves trapped, giving Solana the perfect opportunity to burst through the $180 resistance and set sail for higher seas.
The Hands of the Clock
The current price awry of Solana's on-chain fundamentals is starting to feel like a gift to the bulls, providing just the kind of setup that inspires calculated risks.
Case in point? A plummeting NVT (Network Value to Transactions) ratio that has dipped to its lowest point in two weeks.
Translation: Solana's transaction throughput is galloping ahead of its market cap, a clear sign that the chain is heating up under the hood.
The pièce de résistance? Solana's TVL (Total Value Locked) has soared by almost $3 billion this May, reclaiming the $22 billion mark we last saw in mid-February.
The cherry on top? Back then, SOL was cruising at 41% above its current price levels.
This yawning gap between current and past valuations suggests that the market hasn't quite caught up with the fundamentals, hinting that the party is still in its early stages with plenty of untapped potential.
The Sideline Capital Crew is Watching Solana
Since Solana's 25% weekly gain, the network's stablecoin supply has tumbled from $13.09 billion to $11.71 billion - the steepest drop in nearly three months.
This rapid unloading is a textbook sign of investors sidelining their cash in stablecoins and rushing to riskier assets. Translation? FOMO is starting to creep in, and liquidity is pouring into Solana. But where exactly is the liquidity flowing?
The answer lies in the structure of demand: Addresses holding more than 1k SOL shot up from 22,406 to 23,009, as mid-tier whales quietly beefed up their stash.
Meanwhile, Open Interest escalated from $5.45 billion to $6.60 billion, hinting at heightened speculative leverage and increased directional conviction.
All signs point to Solana getting ready to make its next big move. Liquidity is in place, conviction is growing, and the stage is set for a textbook performance.
If the bulls break the $180 dam, it won't just ignite a breakout; it could initiate a chain reaction: Short liquidations, FOMO-fueled entries, and a fast-track dash toward price discovery.
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In Essence:Solana's recent price volatility might be masking an undervaluation, as the network is exhibiting robust on-chain growth. The decline in stablecoin supply, combined with increased demand from mid-tier whales and rising open interest, indicates bullish sentiment. As the chain's usage heats up, the price could surge beyond the $180 resistance, triggering FOMO-driven entries and liquidation events.
- The current price discrepancy between Solana and its on-chain fundamentals presents an opportunity for investors, as the network shows signs of robust growth, such as a surging TVL and increasing transaction throughput.
- With the decline in stablecoin supply and increased demand from mid-tier whales, coupled with rising open interest, it appears that Solana is gearing up for a significant move, potentially breaking the $180 resistance.
- Solana's strong on-chain growth, including the surge in TVL and network heat-up, suggests that the crypto market might not have fully appreciated the network's potential, hinting at untapped opportunities for investing in Solana's DeFi applications.
