Solana

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
The <a href="https://u.today/bitcoin-btc-at-80000-might-become-reality-is-xrp-breaking-down-at-073-theres-major-problem-with" rel="noopener noreferrer nofollow">Solana</a> network is on the verge of reaching a significant milestone, its market capitalization all-time high (ATH) nearing the $80 billion mark. However, this achievement may be overshadowed by an underlying concern that is not garnering much attention: the supply of SOL tokens has <a href="https://twitter.com/decypher_xyz/status/1767915143009128764" rel="noopener noreferrer nofollow">inflated</a> from approximately 300 million to 443 million since the last bull market. This increase in supply can have far-reaching implications for the token's value and investor sentiment.
When a cryptocurrency's supply increases significantly without a commensurate rise in demand, it can lead to the dilution of the token's value. For long-term holders of <a href="https://u.today/bitcoin-btc-faces-issues-at-70000-solana-sol-to-hit-new-yearly-high-major-xrp-problem-occurs" rel="noopener noreferrer nofollow">SOL</a>, this inflation of the circulating supply means that their share of the network's market capitalization has diminished. It is akin to a company issuing more shares; the value of existing shares tends to drop unless the company's market valuation increases proportionately. <img alt="https://www.tradingview.com/" data-entity-type="file" data-entity-uuid="ccba722f-4065-46c0-b3b0-976c3b95a196" src="https://u.today/sites/default/files/inline-images/image_574.png"><a href="https://www.tradingview.com/" rel="noopener noreferrer nofollow">SOL/USDT Chart by TradingView</a>
Turning to the Solana price chart, we observe a strong uptrend. The price of SOL has been on a steady climb, consistently finding support at its moving averages, which are well-aligned and sloping upwards, a bullish indicator. Particularly, the 50-day moving average has acted as a <a href="https://u.today/50-billion-market-60-million-yearly-contract-revenue-story-of-vaults-leadership-through-eyes-of-its" rel="noopener noreferrer nofollow">support</a> for the price, aiding its upward trajectory.
The recent price candles show an accelerated pace in the appreciation of SOL's value, hinting at bullish market sentiment. However, the increasing volume bars accompanying the price rise could be a double-edged sword: while it indicates strong buying interest, it also raises concerns about potential overbought conditions, especially as the Relative Strength Index (RSI) is trending toward overbought territory.
As of the latest candle on the chart, SOL is trading just below the $170 mark. While this points to strong short-term momentum, investors should be wary of potential pullbacks, given the RSI levels and the increased supply of tokens on the market. If the market begins to factor in the diluting effects of the inflated supply, the bullish momentum might wane, leading to price corrections.

Solana (SOL) to Hit ATH, But There's Major Problem

U_Today

2024년 3월 14일에 게재된 다른 기사

Unlocking the Future: Experts Price Predictions for STORJ, XRP, BTC, TAMA, HBAR, ETH and PI

EU’s AI Act Gets Final Green Light, Sets New Standards in Ethical Governance

Final 24 Hours to Participate in Bitcoin Blockchain’s First ICO

The Future of Money? Central Bank Digital Currencies on the Rise

Bitcoin Open Interest Peaks At $34 Billion, Shattering Previous Records – Details

Ethereum Decreases More Than 5% Within 24 hours

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!