Solana experiences a surge in popularity, attracting a growing number of investors.
Solana (SOL) experienced a significant price surge on February 13th, reaching a peak of $115 during the daily timeframe. This surge is believed to be driven by the increasing volume of defi activity on the Solana network. As a result, SOL staking deposits have also seen a notable increase, indicating a bullish outlook for the cryptocurrency.
According to data from StakingRewards, investors have deposited an additional 140 million SOL into smart contracts between January 27th and February 13th. Currently, there are 382.1 million SOL locked up in staking, with a total value of $42 billion. This suggests that many Solana network validators are positioning themselves for further bullish action.
The rising popularity of staking on PoS networks like Solana not only contributes to the ongoing price rally but also enhances the security and efficiency of the ecosystem. This, combined with the increasing defi volumes, has created a bullish cycle where more users are staking SOL to participate in on-chain activities. These factors could potentially drive the SOL price rally even further.
Technical indicators also support the expectation of further price gains for SOL. The Parabolic Stop and Reverse (SAR) indicator shows a bullish pattern, with its dots positioned below the price bars, indicating an upward trend. At the time of writing, SOL is trading at $110, with the Parabolic SAR dots pointing towards the $98.8 mark.
However, SOL may face resistance at the recent local high of $126 recorded in December 2023. If market sentiment remains positive, SOL prices could potentially break towards $150, as predicted. On the other hand, if the price dips below $90, the bears could negate this positive outlook. Nevertheless, the Parabolic SAR dots suggest that the bulls would establish a strong support level around the $99 area.
Overall, the increasing staking deposits and defi activity on the Solana network indicate a promising future for SOL. Investors and traders are closely monitoring these trends, expecting further price gains in the near future.
