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

According to the researcher, Solana's stablecoin market could signal the next rally for the price of SOL.

Solana memecoins

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.

Lucky Ebosele

Lucky Ebosele is an avid writer with over two years of experience covering cryptocurrencies and blockchain tech. He is constantly researching the latest trends and developments in the space. Away from crypto, he loves everything football.