Solana (SOL) Monthly Review: Exchange-Traded Fund (ETF) Filings Provide Temporary Relief, But On-Chain Data Signals Bearish Outlook

In June 2024, Solana's native token, SOL, experienced significant price fluctuations. SOL closed at $144, after reaching a high of $175 on June 5 and a low of $124 on June 24.

Solana (SOL) price experienced significant ups and downs in June 2024, as the token faced internal network issues and broader market challenges.

After closing at $144 in June, SOL price dropped as low as $124 on June 24. This marked a substantial decline from its peak of $175 on June 5. The token’s price movements were influenced by several factors, including internal network issues and market conditions.

notable events

In early July, SOL price encountered the $140 support level as it fell by 8.5% over two days, erasing gains from the previous three days. SOL price had risen as high as $154.80 before facing resistance at the key support level.

Meanwhile, as SOL approached $142 in mid-June, the token had seen a 23% decrease over three months, while the broader cryptocurrency market lost 9% in the same period.

Despite these challenges, SOL experienced a brief bullish trend at the end of June. This uptick came as VanEck and 21Shares filed for the first spot Solana exchange-traded funds (ETFs) in the U.S. on June 27 and 28, respectively.

As a result of VanEck’s filing, SOL’s price rose by 6%, temporarily boosting market sentiment, which had been dampened by fears of a large selloff due to Mt. Gox repayments.

Solana’s cumulative volume delta (CVD) showed a net positive $29 million over the past week, which was largely driven by an increase in spot buying on Coinbase.

However, the market impact of the ETF filings was limited. The ETH to SOL ratio, which had fallen sharply in March to indicate SOL’s outperformance, reversed after ETH’s ETF was approved in the U.S. and remained flat despite the SOL ETF filings.

The impact on derivative markets also fizzled out, as SOL’s volume-weighted funding rate and open interest returned to neutral levels, indicating a lack of sustained bullish demand.

On-chain data from Solana showed an increase in daily transaction volumes. The network processed 32.7 million transactions on June 1, which rose to 43.8 million by June 30, showing a nearly 34% increase.

In contrast, the addition of new addresses to the network showed signs of slowing down. June saw 25.4 million new addresses, which was slightly down from 26.65 million in May.

Daily active users spiked on June 4 and June 26, reaching 2 million each day, but fell to 1.6 million by month-end.

The total value locked (TVL) within Solana’s ecosystem also declined, dropping from $4.8 billion on May 1 to $3.4 billion by June 30, showing a decrease of roughly 29%.

However, despite this monthly decline, Solana’s TVL has grown 140% year-over-year, from $1.4 billion on January 1, 2024.

Solana has captured nearly 25% of the DEX market, with a total DEX trading volume of $38.4 billion in June. This places Solana as a major player in the decentralized finance space, second only to Ethereum in DEX trading volume.

Technical indicators for Solana showed a bearish outlook. The Simple Moving Average (SMA) in the 1-day timeframe displayed a negative crossover, indicating increased bearish action.

The Moving Average Convergence Divergence (MACD) showed a consistent decline in the green histogram, signaling higher selling pressure. The MACD averages are converging towards a bearish crossover, suggesting further downside.

Despite the recent decline, Solana remained above the 200-day SMA, a crucial support level. Currently, the key support level to watch is $128. If the price stays above this level, the bullish trend might continue.

However, breaking below $128 could lead to further declines toward the major support level at $87.

Solana’s price action has maintained a symmetrical triangle formation, indicating potential future movements. A bounce off the 200-day SMA support might lead to a 22% surge, potentially reaching $164, aligning with the triangle’s top trend line.

The above is the detailed content of Solana (SOL) Monthly Review: Exchange-Traded Fund (ETF) Filings Provide Temporary Relief, But On-Chain Data Signals Bearish Outlook. For more information, please follow other related articles on the PHP Chinese website!