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Solana (SOL), the sixth-ranked cryptocurrency by market capitalization, appears unaligned with the broader market price trend. The asset’s trading volume has climbed by more than 20% within the last 24 hours, but the price continues to lag. This is despite the ongoing bullish rally for Bitcoin and some other altcoins.
Profit-taking weighs on Solana price
According to CoinMarketCap data, Solana’s trading volume as of press time is up by 28.03% at $7.69 billion. This suggests active engagement by holders in the community. Such an upsurge in trading activity creates demand for SOL, which ordinarily should trigger a price uptick.
However, a careful analysis shows that after Solana climbed to near $250 around mid-September, most holders went for profit. The development led to a cooling off in the momentum of SOL’s upward trajectory. Only short-term traders were able to lock in gains as the rise proved temporary.
Additionally, the decision of Galaxy Digital to cancel the staking of 250,000 SOL valued at $40.7 million has generated concerns. Out of this volume, 224,000 SOL are tied to Binance and Coinbase, which suggests a likelihood of selling. Market participants are counting it as bearish pressure on price movement and see the possibility of stagnation or a drop.
Meanwhile, Bitcoin dominance has risen to 58.07 as market funds rotate to the flagship asset. It means more investors are committing funds into BTC than any other crypto assets on the market.
Solana is currently in a latent consolidation phase and could break out once altcoins regain a slight uptick in their dominance. Investors in the community remain optimistic about SOL’s resurgence, given that it has an average growth rate of 16% in the month of October.
If the asset achieves its average growth rate for the month, Solana could hit above $267 before October ends. As of press time, the price was changing hands at $231.01, which represents a 0.72% decline in the last 24 hours. It has lost over $6 after it reached an intraday peak of $237.32.
Institutional confidence builds as Solana eyes potential breakout
Regardless of the price lag, there has been institutional attention on Solana. Just last month, Pantera-backed Helius Medical hinted at adopting a digital asset strategy, with SOL as its preferred option.
The medical device company made a purchase of 760,000 SOL at approximately $167 million.
Some market watchers believe that if the $230 support holds for Solana, after this period of latent consolidation, a breakout could be massive. Renowned analyst Ali Martinez believes a surge to $520 could be achieved within months.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team