Time for a Solana price rebound? SOL futures are mixed, but onchain looks bullish
Solana's token, SOL, saw a 22% rebound after testing $180 support on Feb. 3, rising to $215 but remaining 27% below its all-time high from Jan. 19. The SOL futures market reflects a decline in trader sentiment, with key metrics indicating weakening demand for long positions. Historical analysis shows that market positioning by institutional traders may not accurately predict price movements; notable corrections can occur even when consensus favors trend continuation. Network metrics, including a 21% increase in active decentralized applications (DApps) month-over-month, support SOL's potential for growth. While some criticize recent trends as unsustainable, revenue streams from gaming and other sectors could bolster bullish momentum. Solana's total value locked (TVL) increased by 5.5%, enhancing its market share in comparison to competitors. Key contributors to TVL growth include various DApps generating significant monthly revenue. However, challenges such as failed transactions remain a concern, impacting network reliability. Overall, Solana's growing adoption underscores its long-term price appreciation prospects in the blockchain ecosystem.
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