Analysis of Solana's Liquidity Gap
- Liquidity Gap Causes: Solana's liquidity gap has widened significantly due to risk-off capital outflows and ecosystem selling outpacing organic on-chain demand, despite spot ETFs continuing to absorb supply, indicating that market demand for SOL is not entirely diminished.
- DeFi Performance Decline: According to Messari, Solana's DeFi total value locked (TVL) fell by 22% in Q1 2026 to $6.16 billion, primarily driven by a 33% quarterly decline in SOL's price, suggesting weakened market confidence in DeFi, which could affect future capital inflows.
- Real Demand Signals: True demand arises from users paying for blockspace to solve real problems rather than relying solely on token rewards, with the current Chain GDP remaining flat at $342.2 million, indicating a lack of growth in demand, necessitating attention to active users' fee expenditures.
- ETF and On-Chain Liquidity Interaction: By late May 2026, cumulative net inflows into Solana spot ETFs reached approximately $1.06 billion, which supports supply absorption but does not automatically improve the depth of on-chain order books; monitoring application revenue growth is essential to assess liquidity health.
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Technical Analysis for SOL
Technical Sentiment Analysis for Solana (SOL). As of , Solana (SOL) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 2 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for SOL stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, SOL is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Solana (SOL) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 72.069 | 76.035 | 80.069 | 84.035 | 88.069 | 92.035 | 96.069 |
| Fibonacci | 76.035 | 79.091 | 80.979 | 84.035 | 87.091 | 88.979 | 92.035 |
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