Solana (SOL) Price Forecast: Can This $3.4B Signal Trigger $200 Rebound?

Ibrahim Ajibade
Updated: Apr 11, 2024, 19:04 GMT+00:00

Key Points:

  • Solana (SOL) price has dipped below $174 on April 11 as devs battle to address community concerns surrounding network outages.
  • Solana stakeholders have deposited 19.24 million SOL into staking contracts rather sell into the market FUD
  • In the near-term, SOL bulls look to defend the $168 support territory.
Solana (SOL) price forecast

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Solana (SOL) price has dipped below $174 on April 11 as developers battle to address concerns surrounding incessant network outages. Despite the growing negative sentiment, on-chain data shows that key stakeholders in the Solana ecosystem have refrained from selling.

Can Solana stage an early rebound toward $200?

Solana Price Slides 15% amid Network Outage Concerns

Yet again, the Solana ecosystem is rife with intense controversy as the Layer-1 network battles network outages due to congestion from heightened market activity.

“There’s an issue with this process on Solana, resulting in a user not having a reliable way to get transactions included into blocks. The systems in place for fees and stake-weighted transactions aren’t being reached.”

Matt Sorg, Tech and Product leader at the Solana Foundation, via. X/Twitter, April 6, 2024


Solana (SOL) Price Action Jan - April 2024 | Source: TradingView
Solana (SOL) Price Action Jan – April 2024 | Source: TradingView

Solana price opened trading at $205 on April 1, up 104.7% for the year-to-date. But like the previous uptick in mid-March, the SOL rally has once again being punctuated by network congestion concerns.

At the time of writing on April 11, Solana price has tumbled below $175, down 15% within the monthly timeframe.

In response, Solana developers have swung into action again to proffer lasting solutions to expand throughput and block bot activity by bad actors from clogging up the blockchain network.

Early on-chain movements suggests that key Solana stakeholders have maintained a resilient outlook amid the growing market FUD.

Investors Stake $3.4 Billion Amid Market Dip

In the wake of the latest wave of outage concerns, SOL price slid 15% so far in April 2024, but interestingly on-chain data shows that investors are opting to stake their coins rather than sell-out early.

The chart below is from, a blockchain analytics platform that captures real-time data on coins deposited in Proof of Stake (PoS) contracts.

Solana (SOL) Staking deposits vs. Price | Source:
Solana (SOL) Staking deposits vs. Price | Source:

The latest readings from the Solana network showed that investors held a total of 360.2 million SOL in staking contracts at close of March 31. But as prices began to slide in April, SOL investors began to stake more SOL.

At the time of publication on April 11, the total staking deposits has now surged to 379.24 million SOL.

Essentially, this shows that while prices slid 15% between March 31 and April 11, investors have staked 19.04 million SOL worth approximately $3.4 billion.

When there’s increased staking during a price downtrend, strategic investors consider it a bullish signal for 2 main reasons.

  • Confidence in Long-Term Prospects: The surge in Solana staking deposits indicates that investors have confidence in SOL’s long-term prospects as developers rally to combat the incessant network congestion issues.
  • Reduced Selling Pressure: Staking involves locking up tokens for a certain period, which reduces the circulating supply of SOL available for trading.

As a result, Solana investors staking 19.04 million SOL in the last two weeks, underlines stakeholder confidence and it has also seen the market supply shrink by more than $3.4 billion.

If its persist, the potential supply crunch puts Solana price in prime position for a sharp breakout towards $200 during the next wave of market demand.

Solana (SOL) Price Forecast: Bulls must hold $168 support

Drawing inferences from the $3.4 billion staking deposits recorded since the start of April, majority of Solana holders expect an early rebound towards $200.

However, in terms of short-term price action, the recent network congestion issues have evidently weakened demand for Solana, putting the bulls on the back foot.

Solana price Forecast |April 2024 | Source: TradingView
Solana price Forecast |April 2024 | Source: TradingView

After 15.3% correction in 10-days, Solana Bollinger bands indicator shows that SOL price has now slid below the 20-day Simple Moving Average (SMA) price of $183.4, which puts the bears in short-term market dominance.

To avoid dramatic losses, the SOL bulls must now defend the $168 territory, as depicted by the lower-limit Bollinger band indicators.

But, on the flip side, if demand returns early, the supply decline from the recent $3.4 billion SOL staking deposits could trigger a decisive price breakout towards $200.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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