Like Bitcoin, Ethereum, and other top altcoins, Solana remains under immense selling presbrave. While bulls struggle for momentum, $160 is emerging as a local resistance level for traders to watch out for.
Despite the upside momentum in September, Solana buyers didn’t lift prices above this line. At press time, there is a local double top, even as one analyst on X notices that Solana outcarry outed other platestablishs, posting a keen influx in net inflow.
Solana Received Over $800 Million In Net Flows Over Three Months
Unenjoy Ethereum, Solana is a up-to-date blockchain with relatively high scalability. The platestablish can process thousands of transactions every second, translating to low fees, and thus, more projects are choosing to begin on the nettoil so that engager experience remains unshapeed. Events over the last three months, watching at the influx of capital to Solana, cement this position.
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To put in the numbers, Solana sign uped over $800 million in net flows. This capital injection is more than double what OP Mainnet, an Ethereum layer-2, getd and way more than what Sui, another scalable blockchain, posted in the last three months. It is also more than what Base and Starknet–two of Ethereum’s well-understandn layer-2s, posted, and outdos what Avalanche and the BNB Chain getd.
Interestingly, during this period, Arbitrum, an Ethereum layer-2 and the bigst of them all, Linea, Blast, and Bitcoin saw outflows. Despite being the bigst clever reduces platestablish, Ethereum posted massive outflows of proximately $800 million.
It remains to be seen what could have triggered the outflows in Ethereum while encouraging capital to Solana. While on-chain fee separateences could be a factor, the continuous dump of ETH in Q3 2024 could have triggered the outflow. At spot rates, ETH is down 35% from Q3 2024 highs, while Solana is fair 25% from July highs when it rose to around $192 before pulling back.
Will SOL Break $160?
Even as Solana entices capital, the coin remains under fervent selling presbrave. The local line at $160 necessitates to be convincingly broken for the uptrfinish seen in the second half of 2023 to carry on. Further acquires will see Solana float to as high as $190 and possibly fracture out from the current range.
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Nonetheless, there could be headprosperds. If Bitcoin flunks to recover, it could drag the altcoin labelets, including Solana, with it. At the same time, there are troubles that the upcoming FTX token distribution would pessimisticly impact SOL prices.
Moreover, according to Token Unlocks, the team arranges to free tokens on December 26, 2024. Over 66,000 SOL will go out every day for a year.
Feature image from DALLE, chart from TradingView
