Solana price pulled back to a crucial support level today, Dec. 16, down sharply from the September high of $253. It is hovering near its lowest level since June 22nd. So, will the token rise or fall amid its growing ecosystem growth?
Solana Price Falls Despite Strong Metrics
SOL price has been in a strong downward trend despite its improving metrics and Exchange Traded Fund (ETF) inflows.
Data compiled by SoSoValue show that demand for SOL ETFs has remained elevated since they launched in October.
These funds have now accumulated over $711 million in inflows, bringing the total net assets to $898 million, which is equivalent to 1.28% of its market capitalization.
The Bitwise SOL ETF holds the largest market share, with over $621 million in net assets. It is followed by the Grayscale Solana ETF, which has over $152 million in assets, and the Fidelity fund, which has $92 million. This growth is a sign of demand from American investors.
Meanwhile, the Solana network is growing its market share across other areas. For example, data compiled by Nansen shows that Solana was the most active network in the crypto industry. It handled over 1.83 billion transactions in the last 30 days, much higher than BNB Chain’s 411 million and Base’s 397 million.
Solana is also the third-most profitable network in the crypto industry, generating over $14.5 million in the last 30 days. Tron and Ethereum generated $29 million and $15 million, respectively, during the same period.
Solana Ecosystem Growth
Solana’s ecosystem continues to grow, a figure that will accelerate after the developers launch the Alpenglow upgrade in the first quarter of next year. Alpenglow will introduce additional features, including a surge in transactions per second. It will also introduce the votor and the rotor, and reduce barriers for validators.
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There are signs that more companies are embracing Solana now. For example, in a statement, Ondo Finance noted that it would launch its tokenized stocks and ETF trading platforms on Solana early next year. This is important as this business has become one of its fastest-growing platforms with a total value locked of $400 million.
Solana also made some major announcements at the Breakpoint event last week. For example, JP Morgan, the largest American bank, arranged the issuance of US commercial paper for Galaxy on Solana.
Additionally, Coinbase announced that it will introduce an in-app DEX for trading Solana tokens. More announcements came from companies Solflare, Animoca Brands, Paxos, and Ellipsis Labs.
Solana Price Technical Analysis
The daily timeframe chart shows that the SOL price has crashed in the past few months, moving from a high of $253 in September to the current $127.
This price is an important level, as it has failed to move below it several times since November. It was also unable to drop to that level in June.
The token remains below all moving averages, while its oscillators, such as the Relative Strength Index and the MACD, continue to point downward.
Therefore, the SOL token will likely have a strong bearish breakdown in the coming days. A move below that level will signal more downside, potentially to the psychological $100 level. The bearish SOL price forecast will become invalid if it moves above the key $145 resistance level.
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