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Solana price dipped below $146 on May 8, retracing 9% over a frenetic 48-hour period after bulls failed to reclaim the $160 level: recent SOL staking trends suggest the rally is not over yet.
Solana Enters 9% Pulls Back 9% after Bulls Failed to Reclaim $160
Buoyed by speculative traders piling on over $260 million in fresh capital inflows, Solana’s price made a remarkable start to May 2024.
After the SOL price was rejected at the critical $160 resistance on Monday, bears have managed to force a mild 9% correction in the 48 hours leading up to May 8.
After opening trading for the month at around $118.74, the daily price chart below shows how SOL price rapidly surged 34% by May 6, briefly grazing the $159 mark during that period. With Solana speculative traders still holding firm on their LONG positions, another bullish on-chain catalyst has emerged amid the ongoing pullback.
Investors Stake SOL worth $490 million amid 9% Price Pullback
While Solana’s market cap has shrunk by over $4 billion during the 9% price dip over the last 48 hours, vital on-chain staking data trends suggest bullish investors have not thrown in the towel.
The staking Rewards chart below illustrates historical movements in the number of SOL coins deposited in staking contracts.
As seen above, Solana investors held a total of 362.6 million SOL in staking contracts at close of April 30. Meanwhile, that figure has now ballooned to 365.9 million according to the latest data on May 8.
Essentially, existing Solana holders have opted to stake an additional 3.3 million SOL, worth approximately $490 million, when valued at current prices of around $145 per coin.
When staking deposits rise during a price pull back, it signals that rather than join the sell-off, the majority of existing investors have the option to stake their coins. This trend allows investors to earn passive income while they hold out in the expectation that the correction phase will flip into a parabolic SOL price breakout in the near term.
Solana Price Forecast: $200 Rebound Still in Play?
Solana price is currently trading at $145, at the time of writing on May 8. However, with investors pulling over $490 million worth of SOL from the short-term market supply in May 2024, the sell-pressure could ease up considerably, keep Solana price above the $140 level in the days ahead.
More so, the Bollinger Band technical indicator affirms that Solana’s price looks more likely to break out towards $200 than to lose the $120 support.
As seen above, despite the 9% correction Solana price is current hanging above the 20-day SMA price mark at $144. If SOL price can avoid a breakdown below that vital support territory, the bulls could regroup for an audacious attempt at the $200 milestone as May 2024 unfolds.
On the contrary, in the event of a prolonged bearish market downswing, Solana’s price could find steady support around the $130 support cluster as depicted by the lower-limit Bollinger band.