Solana Reclaims $160, Eyes Breakout After $250M USDC Mint: What’s Next for SOL Price?
The price of SOL continued increasing from July 12 and came to $160 today, which is its key resistance. The interaction with this crucial level will determine the future outlook.
Key Takeaways
- Anticipation of Solana ETFs drives Solana’s price upward.
- $250 million USDC minted on Solana likely played a role.
- Breaking $160 is crucial for a bullish SOL price trend.
On July 16, Solana’s price rose above $160, marking a 20% gain from its recent low on July 12. The surge is likely driven by anticipation surrounding Solana ETFs and Circle minting $250 million worth of USDC on the network.
While SOL buzzes with excitement, the bears remain on the fence unless the token breaks above key levels in the coming weeks.
$250 Million USDC Minted on Solana
On July 10, stablecoin giant Circle minted $250 million worth of USDC on Solana. This development is beneficial for the ecosystem as it introduces new liquidity, which is crucial for decentralized applications (dApps), decentralized finance (DeFi) platforms, and other projects on Solana, fostering a more vibrant ecosystem.
The increased utility and demand for SOL, driven by the USDC integration, could positively impact its price. As the demand for SOL rises, the token’s price could experience upward pressure.
SOL Price Analysis
On March 18, Solana peaked at $210 but sharply declined to $120 by May 1, marking a 43% drop. However, SOL quickly rebounded, reaching $190 by May 21 and breaking through previous support levels that had served as resistance.
Despite the initial recovery, SOL subsequently dropped below this critical level. The decline since May 1 unfolded in three distinct waves, signaling a potential extended bearish trend. The breach of the $160 support confirmed that the surge to May 21 constituted a three-wave corrective pattern, implying that the ongoing decline could be part of a broader bearish phase or a complex correction initiated from March 18.
As of June 24, two potential scenarios became apparent. Technical analysis indicated that SOL was consolidating below $157, forming a fourth wave before potentially declining further to around $102 in its fifth wave, completing a three-wave ABC correction.
The rejection at $153 validated a descending flat triangle pattern. Approaching the $160 level, a breakout could confirm the end of SOL’s corrective phase. However, another rejection at the horizontal resistance of $160 could indicate a higher likelihood of a downturn towards $120.
Solana (SOL) Price Prediction 2025: Downturn Likely Before Strong Recovery
