Solana’s SOL coin had a great July, with its price going up by 27%. It is now close to its highest price this year. But, even with these gains, there are signs that the price may go down soon.
At the time of writing this article, the trade of Sol coin is $183.5
July Performance
Solana’s SOL coin ended July with a 30% increase in price, getting close to its yearly high of about $210. This rise is mostly because of excitement around new meme crypto tokens and a strong liquid staking system on the Solana blockchain network.
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Solana outperforming on the bounce as usual
Now breaking out of resistance on a breakout arrow setup that usually starts brand new trends
Also note the Bottom was once again picked off by our confirmed Bottom setup pic.twitter.com/IDLUVezgce
— Wick (@ZeroHedge_) July 27, 2024
Increased Network Activity
Solana’s total value locked (TVL) went up by 10%, reaching $5.42 billion. This also led to more transactions and activity on the network. Liquid staking projects like Jito and Marinade saw big growth, with their TVL increasing by 40% and 30%, respectively, over the last month.
Staking Data
According to Dune Analytics, the amount of SOL put into liquid staking has more than doubled in 2024. The number of staked liquid staking tokens (LSTs) went up from 163,827 to 807,712, a 393% increase between June 1 and July 26.
Signs of Price Drop
Despite these good results, there are signs that SOL’s price might go down. The big gains in July could lead to some investors selling to take profits, which might push the price down. Also, changes in the overall market and investor feelings could affect SOL’s price.
As Solana gets close to its highest price this year, investors will watch closely for any signs of the price dropping. While the network’s basics are strong, the market’s reaction to the recent gains will be important for SOL’s short-term price.
In short, while Solana’s SOL coin had an excellent July, signs of a possible price drop suggest that the next few weeks might be challenging for keeping its upward trend.
Read also: Potential Bitcoin Crash Looms Amid U.S. Government Bitcoin Transfer
Solana’s SOL Coin May See Price Drop After Big Gains in July-Aug
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