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A few days after peaking at $161, crypto Solana (SOL) is taking a break from its recent rally. The flagship token of the high-powered blockchain ecosystem is experiencing a slight correction, raising questions about the sustainability of its upward momentum.
A measured decline after a sharp rise
After Solana’s meteoric rise (SOL) observes a strategic stopover. This brief correction, occurring in the context of high activity on the network and continued innovation, reflects the cyclical nature of the crypto market.
At the time of writing, SOL is trading at $156.37, up a modest 0.58% in 24 hours. This slight decline comes on the back of an impressive rally that drove the price to $161.
Several interdependent factors explain this momentary pause. The decisive role was mainly played by the intensive activity of the Pump.fun account. Liquidation of 122,250 SOL (approx. USD 18.9 million) over the past five days has put significant downward pressure on the price.
Although this activity demonstrates the vitality of the Solana ecosystem, it has temporarily saturated the market and caused a natural leveling of prices.
Moreover, after three weeks of continuous growth, a phase of consolidation was predictable and even desirable for the long-term health of the market. In line with the logic of profit taking, investors naturally reduced their positions, which contributed to this temporary drop in price.
Excessive network activity despite repair
Solana continues to post impressive stats despite the recent drop in his price. With 3.04 million active addresses per day, blockchain is leading the pack of the most used networks. This excitement can be explained mainly by the craze around cryptomemes and the introduction of new protocols such as Pump.Fun.
The launch of SOL’s liquid staking also helped attract new investors to the Solana ecosystem.
The intense activity on Pump.fun perfectly illustrates this boom. With revenues of 773,617 SOL (approximately $120.68 million) generated, the platform demonstrates the growing popularity of meme tokens on Solana.
Trade volume also shows an increase of 42.21%, signaling sustained trader interest and abundant liquidity. Moreover, in the last 7 days, SOL maintains a remarkable increase of 8.84%, indicating the token’s resilience in the face of this short-term correction.
The market remains attentive to further SOL movements. A move above the recent high of $161 could pave the way for further resistance tests at $174 and then $186. Conversely, a drop below $154 could lead to a decline towards the $147 support.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.