Solana (SOL) Price Surges as Staking Deposits Reach $42 Billion
Solana (SOL) experienced a significant price surge, reaching a peak of $115 on Feb. 13. This increase in price can be attributed to the rising volumes of decentralized finance (defi) activity on the Solana network.
Staking Deposits Signal Bullish Action
Recent data shows that staking deposits on the Solana network have been increasing, indicating that many investors are positioning themselves for further bullish action. Between Jan. 27 and Feb. 13, an additional 140 million SOL was deposited into smart contracts, bringing the total value of staked coins to $42 billion.
Staking Enhances Security and Efficiency
Increased staking on proof-of-stake (PoS) networks like Solana not only contributes to the ongoing price rally but also improves the security and efficiency of the ecosystem. This encourages more users to stake SOL and participate in on-chain activities, creating a positive feedback loop.
Will SOL Break Above $125?
The staking trends observed during this rally suggest that there is an overwhelming expectation of further price gains. The Parabolic Stop and Reverse (SAR) technical indicator also indicates a bullish pattern. However, SOL may face resistance at the recent local high of $126. If market sentiment remains positive, SOL prices could potentially reach $150.
Bears Can Be Hindered by Strong Support Levels
In the event of a dip below $90, bears may attempt to negate the positive prediction for SOL’s price. However, the Parabolic SAR dots indicate that bulls can establish a strong support buy-wall around the $99 area.
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