Researcher Shares Key Indicator Showing When Solana Will Pump Above $210 Again

Renowned market researcher Gumshoe has projected that the price of SOL, the native token of the Solana network, could be on the verge of a rally. According to an analysis shared by the researcher, a correlation between the price of SOL and the market cap of Solana stablecoins, which played a role in SOL’s rally to $210 in March, mirrors a similar pattern.

A Similar Pattern 

Gumshoe posted a chart from DefiLlama, showing that Solana’s stablecoins market cap peaked at $3.4 billion in April, three weeks after SOL reached its peak of $210 (in March). Note that the stablecoin market cap was around $2.75 billion when the token hit this price level.

The chart shows that the Solana stablecoin market cap has declined since its April peak, but it is currently approaching the level ($2.75 billion) it was at when SOL last hit a peak of $210.

Gumshoe’s analysis suggests a correlation between the price of SOL and the market cap of Solana stablecoins. He noted that when the stablecoin market cap starts to bottom out or trend higher around the $2.75 billion line, it could signal that the price of SOL is about to rally.

According to data from DefiLlama, the Solana stablecoin market cap was $3.003 billion as of June 11, 2024. The data shows that the market cap has been trending downward from its peak of $3.4 billion since April. It is currently edging closer to the $2.75 billion price level.

Last week, Gumshoe also predicted that an impending increase in stablecoin inflow on Solana could propel SOL’s price to $350.

SOL’s Performance 

The latest analysis comes as the price of SOL continues to struggle since hitting a $210 peak in March. At the time of writing, the token was trading at $152, indicating a 4% decline in the past 24 hours. Moreover, SOL has been down 11% over the past two weeks and 10% in the last seven days.