Solana's $200 Test: Can SOL Sustain the Momentum?
Solana's $200 Milestone: Will It Hold?
Solana (SOL) has surged past the $200 mark, fueled by increased staking activity. The key question now is whether this rally reflects a fundamental shift in how investors value SOL.
SOL has demonstrated significant strength, closing at $195 on July 21st after a 7.88% daily increase—its highest close in nearly five months. This push resulted in $538 million in realized gains, a two-month peak, suggesting sidelined supply is re-entering the market.
The subsequent session saw SOL increase by 4.61% intraday. According to market analysts, SOL's next move hinges on its ability to sustain this bullish momentum.
Staking Activity Signals Strategic Shift
Historically, Solana's price movements have mirrored staking flows, with rallies occurring as more capital is locked for yield. This pattern holds true now.
Following a 23% weekly gain, Solana's Total Value Locked (TVL) saw a sharp rise, attracting almost $800 million in inflows and reaching $9.95 billion—a level not seen in approximately 23 weeks.
Source: DeFilLama
This breakout isn't merely a relative gain against Ethereum (ETH). The SOL/ETH pair saw nearly a 12% increase in under 48 hours as ETH faced resistance.
The primary driver is capital flowing into protocol-level yield, indicating conviction-backed investments rather than speculative bids.
Analysts suggest that if buyers maintain this support, Solana is positioned for further gains and potential long-term expansion.
FOMO Drives Solana's Momentum
Solana surpassed a key supply zone at $185, a significant cost basis cluster. With previous holders now in profit, the $538 million in realized gains could be the initial phase of distribution, triggering FOMO (Fear Of Missing Out).
Solana's new address count jumped by 26%, with 1.5 million wallets created around the $195 level, signaling new demand at local highs.
Source: Glassnode
The impact is twofold: staking reduces the circulating supply, and FOMO absorbs liquidity exits, sustaining a bullish market structure despite profit-taking.
If this structure persists, Solana is likely to overcome the $200 resistance, supported by sustained demand from both rotational capital and conviction-based positioning, setting the stage for continued growth.