The core CPI in the United States rose by 3.1% year-on-year, lower than the expected 3.2%. Due to inflation being below expectations, the cryptocurrency market reacted positively,Solana briefly broke through $130.
Currently, Solana is trading at $128, indicating a potential bullish recovery. Will this reversal lead to a price surge to $170? Let’s find out.
Solana Price Analysis
On the daily chart, the SOL price shows a downward trend, having dropped to a fluctuation low of $112. However, with a 6% price surge on March 11, Solana’s bullish trend is gradually strengthening.
With an intraday increase of 1.94%, continuing the bullish momentum, Solana has entered a trend of five consecutive red candles. Additionally, due to a potential V-shaped reversal, Solana is starting an early rebound from the S-1 pivot support level of $104.
With the recovery, Solana suggests that the 20-day EMA may rebound to $145.
Solana’s 24-Hour Revenue Surpasses Ethereum
In the context of a short-term recovery and declining U.S. inflation, Solana has set another record, with 24-hour revenue exceeding that of Ethereum. According to a recent article by SolanaFloor, the 24-hour revenue of the Solana network is $442,000.
This is a significant increase compared to Ethereum’s $419,000. The third-ranked Maker’s 24-hour revenue is $391,000.
SIMD-228 Proposal Set to Be Approved
As mentioned in our previous article, the SIMD-228 protocol proposal in Solana is under discussion, aiming to reduce the SOL inflation rate by nearly 80%. According to recent voting results, the proposal is currently passing with 67.97% approval, exceeding the 67% threshold.
However, 56% of stakers have yet to vote. Voting will continue until the end of Epoch 755.
Solana Derivatives Signal Rising Open Interest
As Solana stands at a crossroads, the derivatives market has seen open contracts surge to $3.7 billion. However, the funding rate remains at a negative 0.0065%, reflecting sellers’ willingness to pay a premium and hold short positions.
The long-short ratio over the past 24 hours is 0.9767, indicating a slight increase in the number of short accounts. The liquidation amount has risen to $13.12 million, with $7.54 million in short liquidations and $5.58 million in long liquidations.
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