Solana (Sol) recently showed a limited price movement despite a substantial accumulation of the token. The price remained relatively stable in May, probably due to the overheating of Altcoin.
Although this stagnation is a sign of prudence, the market is optimistic, which could lead to potential gains for Solana in the near future.
Solana investors continue to accumulate
In the past 10 days, Solana’s balance on scholarships has dropped 2.2 million soil, estimated at around $ 381 million. This drop in supply indicates that investors accumulated Solana during this period.
The current accumulation is probably driven by a mixture of factors, including the broader feeling of the bullish market, the fear of missing (FOMO) and the expectation of the future price appreciation.
This reduction in the offer reflects increased confidence in investors, many choosing to hold rather than selling their soil. As more and more investors accumulate the token, the exchange of exchanges decreases, potentially creating upward pressure on the long -term price.
The overall impetus of the Solana market shows signs of potential volatility. Technical indicators, such as Bollinger bands, reveal that the bands shrink.
This tightening of the bands is a classic signal of potential compression, which often precedes an increase in price volatility.
If compression leads to an upward escape, Solana could see an increase in price, in particular with the wider market showing positive impetus.
However, the narrowing of Bollinger’s bands also suggests that a period of consolidation could occur above all significant movement.
Soil price must burst
The Solana price has evolved laterally for a large part of May, probably due to the overheating of the tokens in previous weeks. However, this cooling period could create an opportunity for a bullish movement.
While the wider market continues to show positive signals and the tendency of accumulation persists, Solana can rise from its current consolidation phase.
At $ 173, Solana tests critical support levels. To initiate a rally, Solana should secure $ 178 as a support. If he manages to exceed $ 180 and successfully rape $ 188, this could indicate the start of an upward trend.
A successful break above these levels would signal higher potential.
On the other hand, if Solana does not maintain support at $ 178, it could fall below the $ 168 mark, potentially reaching $ 161. Such a decline would invalidate the thesis raised and suggest a risk of additional decline for the token.
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