Solana is striving to recover to $145, but its network foundation remains solid

On-chain and derivative indicators for Solana show no signs of pressure, which could pave the way for its stock price to rebound to $160. Since July 3rd, Solana's native token SOL has failed to break through the resistance of $145. This poor performance is partly due to a decrease in investor interest in cryptocurrencies, causing the entire industry's market value to drop by 5% within nine days. Nevertheless, from July 3rd to July 12th, SOL's performance still lagged behind its competitors with its price falling by 7.8%, while BNB and Ether fell by 6.5% respectively during the same period.

Traders are now worried that even if the entire cryptocurrency market recovers some losses, SOL's bearish momentum will continue. However, on-chain indicators for Solana and derivatives of SOL suggest that the market may be reversing course preparing for a price rise above $160 from five weeks ago.

Meanwhile, some Solana SPL tokens have significantly underperformed explaining why demand for SOL has decreased. When participants in the Solana ecosystem suffer losses, funds circulating in their decentralized applications decrease negatively impacting demand for SOL. Between July 3rd and July 12th DogWifHat (WIF), Helium (HNT), and Jito (JTO) fell by 24%,18%,and18% respectively.

In a broader context,SOL remains as fourth largest cryptocurrency(excluding stablecoins)with a market cap of$65 billion.In comparison,Toncoin(TON)has a market cap of$18 billion ,Tron(TRX)$12 billion,and Avalanche(AVAX)$10 billion.Furthermore according to data from DefiLlama,Solanas total locked value(TVL)matched BNB Chain’s TVL first time on july5,since then difference remained small.