Solana TVL Reaches $5 Billion with Support from Franklin Templeton and Citigroup – What’s Next for SOL Price?

The Solana price has slipped 0.94% today, with the SOL/USD trading at $143 at press time. Despite the plunge, its 24-hour trading volume has surged 55% to $2.09 billion, suggesting intense market activity among investors and traders. 

Meanwhile, Franklin Templeton and Citigroup have chosen Solana for future financial services. Franklin Templeton, managing over $1.4 trillion in assets, has announced plans to launch a mutual fund natively on Solana. Citigroup, on the other hand, is exploring the blockchain’s potential for smart contracts and cross-border payments. 

JUST IN:

Franklin Templeton and Citigroup are embracing Solana blockchain for future services. Franklin Templeton plans a mutual fund launch on Solana; Citi delving into smart contracts & cross-border transfers. #FranklinTempleton #Citigroup #Solana @CryptoSlate

— Sharpe Signals (@SharpeSignals) September 21, 2024

Furthermore, Solana’s Total Value Locked (TVL) has bounced back, hitting 5 billion. This signals that the Solana ecosystem is growing stronger, and there is a rise in confidence among investors.

🔥 JUST IN: #Solana’s 💰 TVL bounces back, hitting $5B! 🚀

The ecosystem keeps growing stronger! #Crypto #sol #trading pic.twitter.com/Pgho8ZhkP2

— Cryptocurrency Inside (@Crypto_Inside_) September 23, 2024

It is worth noting that the Solana price has the potential to break out, accompanied by rising trading volume. Moreover, the growing institutional adoption sets the pace for the expected price increase in the coming days. 

Solana Statistical Data

Based on CoinmarketCap data: 

• SOL price now – $143
• Trading volume (24h) – $2.09 billion
• Market cap – $67 billion
• Total supply – 585 million
• Circulating supply – 468 million 
• SOL ranking – #5

SOL Price Aims for a Break Out Above the Bullish Flag

Solana’s price experienced a bullish comeback on September 20 as altcoins pushed to the green following the Fed rate cut. SOL soared 18% on September 20 to trade at $153 before succumbing to a sudden surge in overhead pressure, mainly due to short-term profit-booking activities.

Support at $139, which serves as a key inflection point, is needed to affirm the bullish grip and reverse the trend. Additionally, a bullish flag in the 4-hour chart timeframe reduces the risk of declines burdening the Solana market. 

Meanwhile, certain key levels, starting with the 50-day and 200-day Simple Moving Averages(SMAs), would determine the direction SOL would take. Currently, the bulls have established strong support at $139 (coinciding with the 50-day and 200-day SMAs), reinforcing the bullish picture in the SOL market. 

The Relative Strength Index (RSI) sits at 49, suggesting indecision in the market. If the bulls increase their buying appetite, the RSI could hurtle to the upside, suggesting intense buying activity, and vice versa. 

If more sellers embrace the call to sell SOL from the Moving Average Convergence Divergence (MACD) indicator, momentum will quickly diminish, with the price dwindling below the flag pattern. Moreover, trading the momentum indicator requires traders to confirm that the blue MACD line holds above the orange signal line before placing buy orders. It is prudent to ensure that the MACD is moving upward toward the mean line at 0.00 or above it into the positive region.

SOL Price Prediction

In the 4-hour chart above, there is indecision in the SOL market as both the bulls and bears are struggling to control the market. Meanwhile, to the upside, if the $139 support holds, the bulls will gain momentum, sending SOL on an upward trajectory. Furthermore, as institutional adoption grows, Solana’s outlook remains strong, with further price increases expected if momentum builds. In such a scenario, SOL would break above the technical barrier at $153 in the short term. In a highly bullish case, SOL would test the 200 mark.

On the downside, if the $139 support won’t hold, the SOL price would plunge. This would see the SOL price retest the $138 support level. Increased selling pressure would see stronger support at $130, providing additional protection against further downside.