Will SOL Break Out Or Plunge Further?

Solana has slipped into a tight trading range. Its price remains stuck between essential support and resistance levels. Investors wonder if a new surge is on the horizon—or if the token faces further downside. Broader market uncertainties keep many on edge, as Solana Price Moves become more unpredictable each day.

Yet Solana still commands attention in the decentralized finance (DeFi) space. Despite recent headwinds, it has a robust network, significant partnerships, and a dedicated community of supporters.

The TVL Struggle

Solana’s Total Value Locked (TVL) has fallen below $7 billion. This dip hints at waning capital inflows into Solana’s DeFi ecosystem. It previously topped $10 billion but hasn’t managed to push back above that figure since late February.

Why TVL Matters

TVL shows how much money is locked in DeFi protocols. A higher TVL often signals investor confidence. Solana’s drop below $7 billion reveals a cautious mood. Global market conditions and recent macroeconomic concerns push investors toward safer plays, contributing to this lull.

Whale Activity Picks Up

On-chain data reveals a slight uptick in large holders, also known as whales. They own at least 10,000 SOL each. The whale count climbed from 5,008 to 5,031 in two days. This is short of the March 3 high, yet it still hints at renewed accumulation. Whales sometimes shape market direction, injecting extra volatility when they buy or sell en masse.

Solana Price Levels

Solana’s price now hovers around $120 to $130. That’s a narrow band for a token that once soared above $200. Traders watch support and resistance zones carefully. If SOL loses $120, $112 becomes the next stop. Momentum could shift bearish, pushing prices even lower.

Possible Breakout Scenarios

If Solana breaks above $131, bullish sentiment may gather steam. The first target lies near $152. A push beyond that level could pave the way to $179.85, a realm Solana has not revisited in weeks. Renewed optimism, partnerships, or a market-wide rally could fuel that breakout.

Broader Context

Solana isn’t the only project facing uncertainty. Market volatility has rattled many digital assets. Some analysts predict a shift as liquidity rebounds and risk appetite grows. Others caution that macro conditions remain murky. This uncertainty places extra weight on each Solana price swing.

Solana’s tight trading range signals indecision. Its TVL languishes under $7 billion, yet whale activity shows some optimism. The token rests on crucial support at $120. A swift move below that line could invite steeper losses. However, a jump above $131 may spark a rebound toward $152 or even beyond. Solana Price Moves seem poised for a decisive turn. Until then, investors watch the charts for any sign of the next big trend.