Is SOL Poised to Surpass $170? Two Strong Buy Signals Hint Yes

Solana’s Recent Performance and Macroeconomic Factors

Solana’s native token, SOL (SOL), experienced a downturn on June 11, reaching a four-week low of $145, reflecting a 15.8% drop in just four days. This decline exceeded the broader cryptocurrency market’s downturn, which saw a 10% decrease in total capitalization over the same period.

The macroeconomic landscape, characterized by concerns over potential stock market corrections and interest rate changes by the United States Federal Reserve (Fed), may have contributed to SOL’s recent performance.

Impact of Macroeconomic Events on SOL’s Price

• Investor concerns about stock market corrections and Fed interest rate decisions.
• Expectations of potential market selloffs due to CPI increases and inflation data.
• Potential positive impact from discussions regarding a potential U.S. ETF listing for SOL.
• Issues within the Solana network, such as maximum extractable value (MEV) exploitation, affecting investor sentiment.

Solana’s On-Chain and Derivatives Metrics

Despite recent challenges, several indicators suggest potential upside for SOL:

• Stability in SOL futures funding rate indicates market resilience despite price drops.
• On-chain data shows increased user numbers and transaction volume, although transaction volume remains lower than competitors like Polygon and Arbitrum.

The stability in SOL derivatives and on-chain metrics, coupled with ongoing efforts to address network issues, suggests a potential for SOL to reclaim a price of $170 in the near future.