Solana is experiencing an influx of liquidity - What does this mean for the SOL price?

Solana is experiencing an influx of liquidity - What does this mean for the SOL price?

The cryptocurrency market has been experiencing some interesting changes and one of the most significant developments in recent weeks has been the dramatic influx of liquidity into the Solana network. Investors have poured more than $120 million into the platform from competing blockchains, indicating renewed confidence in its potential. However, the question remains whether the SOL token price can sustain its recent gains.

Renewed Confidence in Solana

According to Debridge data, liquidity from various blockchains has moved into Solana over the past 30 days. The largest amount, $41.5 million, was pulled from Ethereum, followed by $37.3 million from Arbitrum. Other smaller amounts came from platforms such as Base (16 million), BNB Chain (14 million) and Sonic (6.6 million).

This positive trend is particularly interesting in the context of the recent problems Solana has experienced. Following the memecoin LIBRA scandal that hit Argentine President Javier Milei, investors moved $485 million from the network to other blockchains. However, the current influx of liquidity coincides with a recovery in the prices of memecoins such as POPCAT, FARTCOIN, BONK and WIF, which have seen significant gains.

Technical Analysis Suggests Challenges

While the liquidity inflows are encouraging, technical indicators suggest that SOL may have difficulty sustaining its gains. Total fees generated in March were just under $46 million, well below their peak of over $400 million in January 2025. Currently, fees for April are around $22 million.

On the daily chart, SOL is still in a bearish trend. For the trend to reverse, the price needs to close above $147. Currently, Solana is facing resistance at the $140 level, where the 50-day exponential moving average (EMA) represents strong resistance. A bullish close above this average would only occur if price breaks above current levels.

Possibility of a correction

A bearish divergence between price and the relative strength indicator (RSI) has emerged on the lower time frame (LTF) charts. Historically, these setups have signaled a short-term correction. Since the beginning of 2025, SOL has encountered four bearish divergences that have always resulted in a price decline.

The strong similarity between previous and current bearish divergences suggests that Solana could face another decline. The key area for a potential price rebound appears to be the zone between $115 and $108.

Conclusion

In a recent social media post, Glassnode reported a significant shift in the distribution of realized Solana prices, with more than 32 million SOLs purchased in recent days at the $130 level. This amount represents 5% of the total supply, suggesting that the $130 level could act as a strong resistance or potential support level going forward.

The inflow of liquidity into Solana is undoubtedly a positive signal, but the market needs to be cautious and monitor technical indicators. It will be interesting to see how the situation unfolds in the coming days and whether SOL can overcome the hurdles ahead.

*This is not an investment recommendation.

Coingarage team