The cryptocurrency Solana's price dropped 5.6% in recent hours but strong demand and investments from major players provide robust support for its value.
Drop in Solana Price and Its Causes
The price of Solana fell to $232.61 at 4:05 a.m. EST after a 15.5% increase in daily trading volume to $9.62 billion.
Network Activity and Galaxy Digital Investments
Galaxy Digital's investment of $306 million on exchanges Coinbase and Binance totaled $1.55 billion over the past five days. This institutional interest supports confidence in Solana's prospects. The total value locked in DeFi on Solana has also reached an all-time high of $13 billion, confirming activity on the platform.
Technical Analysis and Solana's Prospects
From a technical perspective, Solana remains in a bullish position, with a recent 'golden cross' indicating potential further growth. The previous resistance level at $250 is critical, and if breached, the next target could be $295.
Despite the recent drop, Solana showcases strong network activity and is supported by significant investments, which creates a basis for optimism among investors.
