The Solana (SOL) network is emerging as a top performer in revenue due to the inflow of assets through cross-chain operations, which may significantly impact its future.
Inflow of Assets to Solana
Ethereum (ETH) contributed over $300 million of the more than $450 million in bridging assets that April brought to the Solana blockchain. These significant cross-chain activities indicate growing user confidence in Solana’s ability to handle large-scale operations while maintaining cost efficiency.
Solana Liquidation Levels
The analysis of SOL liquidation levels showed that the price at $143.32 is positioned just above long liquidations at $143.5. This creates potential threats on the downside, as market dynamics could shift in this region, leading to trader liquidations. A significant number of short positions could trigger a 'liquidation magnet' effect if prices move above $145.
SOL Price Analysis
The upward trendline maintained by SOL since 2020 continues to protect an uptrend structure across its monthly timeframe perspective. The SOL price at $144.59 is firmly above critical support ranging from $120 to $150, historically prompting substantial upward price movements.
Thus, while Solana displays strong market performance, attention must be paid to the associated risks with current support levels and trader liquidations.
