Solana has stood out in the cryptocurrency market in recent months, with both an increase in trading volume and new offerings that could impact the network’s future token supply. While market data indicate that the activity on the network has significantly strengthened, evaluations are made that the long-term upward scenario is maintained in the technical outlook.
The increase in transaction volume attracted attention
Market expert Zensei stated that the transaction volume in Solana increased by 170.3% on an annual basis in the April, May and June periods. In the same period, growth on the Hyperliquid side remained at 9.1%. This chart showed that the growth rate on Solana was approximately 19 times higher than on the compared network.
Solana is known as a blockchain network that stands out with high speed and low transaction costs. While the recently increasing transaction flow indicates that the network maintains user and capital interest, investors’ focus has shifted not only to price movements but also to changes at the protocol level.
DeFi Dev Corp states that approximately 60 thousand new SOLs are generated daily in the Solana network, whereas only 650 SOLs are burned.
$270 resistance is observed in the technical outlook
Vuori Trading evaluates that SOL has entered the recovery process after the previous decline and may have moved into the fifth wave according to Elliott wave counting. According to the analyst, if the general optimism in the cryptocurrency market is maintained, the $ 1,259 level may be among the possible targets for Solana. The current pullback is seen as a fourth wave correction rather than a break in the trend.
In technical indicators, the $107.94 level remains the main support. In contrast, $270 stands out as the nearest strong resistance zone. While it is considered that the upward movement may gain strength if the price settles above this level, falling below $ 107.94 may increase the risk of a deeper correction.
RSI, the relative strength index, is also among the indicators that investors follow closely. The fact that the indicator is approaching the regions where sharp declines ended in the past has caused some analysts to follow the current structure carefully.
Mini dictionary: Elliott wave theory is a technical analysis approach that argues that price movements progress in repeating wave structures. RSI is an indicator that measures the speed and strength of price movement and is used to monitor overbought and oversold areas.
New offers may affect supply structure
Beyond the technical aspect, protocol updates discussed in the Solana community could have more permanent consequences in the token economy. DeFi Dev Corp announced that the network currently produces approximately 60 thousand new SOLs every day, but the amount burned remains at only 650 SOLs.
The three SIMD proposals on the agenda aim to narrow this gap. SIMD-550 aims to reduce the amount of tokens to be released in the future by increasing the rate of inflation decline in Solana. SIMD-123 aims to increase institutional staking participation through validator pools, thus reducing the amount of SOL in circulation.
Vuori Trading predicts that the current pullback is more of a correction than a trend reversal, and higher levels could be retested if the overall market support continues.
If these proposals are accepted, results such as lower inflation in the Solana network, higher staking participation, and additional token burning as network usage increases may occur. Market participants are monitoring governance decisions, the capacity of the network to carry the increased pace of activity, and price behavior above $270.
