On Wednesday, June 10, Circle, a stablecoin issuer, minted USDC worth $250 million on the Solana (SOL) blockchain. This injection of fresh liquidity has bolstered market confidence regarding the potential impact of a Solana ETF on the token’s price. Newly minted stablecoins on the network typically indicate heightened demand for the underlying crypto asset. The question remains: will this influx lead to higher SOL prices?
Circle Empowers Solana Supporters with Increased Buying Power
At the time of writing, SOL is priced at $143.85, marking an 8.14% increase over the past week. Concurrently, $250 million worth of USDC was added to the blockchain, meeting the growing demand from users.
Circle’s commitment to enhancing liquidity on Solana was underscored in March when the company announced its intention to bolster the blockchain’s liquidity. The recent injection of $250 million in USDC reaffirms this dedication.
Moreover, speculation surrounding the Solana ETF potentially increasing the number of SOL holders suggests a potential price increase for the token. This sentiment is supported by the Supertrend indicator on the daily chart, which is used to identify trends and signal buy or sell opportunities.
Currently, the Supertrend indicator shows a buy signal at $125.18, indicating bullish momentum. This trend appears validated by SOL’s current price increase.
The chart suggests that SOL’s price might aim for $160 next, potentially encountering resistance at that level.
Supporting this upward movement is the Moving Average Convergence Divergence (MACD), which uses the 12-day and 26-day moving averages to gauge bullish or bearish trends.
A positive MACD reading indicates bullish momentum, reinforcing expectations for continued upward movement in SOL’s price.
SOL Price Prediction: From $159, Could It Reach $950 Next?
Furthermore, the buzz surrounding the Solana ETF filing has sparked fresh predictions for the cryptocurrency. For instance, on July 8, analyst Ali Martinez shared an ambitious SOL forecast.
According to Martinez, Solana appears poised to follow a pattern similar to its breakout in 2021. Based on the chart provided, the analyst predicts that SOL’s price could surge above $950 before the end of the current bull cycle.
In addition, BeInCrypto utilizes the Fibonacci Retracement indicator to identify potential levels that SOL may reach in the near future. Key numbers in this sequence include 23.6%, 38.2%, 61.8%, and 76.8%. These ratios help in pinpointing support and resistance levels, as well as determining potential price targets.
