SOL recently rallied to $152 but will a decline in Solana’s network TVL negatively impact the altcoin’s price?
Solana (SOL), the native token of the Solana network, surged 16.4% between Sept. 18 and Sept. 20, but the $152 resistance level proved more formidable than expected, leading to a 6% pullback to its current level of $143.
Investors are now questioning the cause of SOL's price weakness and whether the recent outflows from Solana network deposits signal a potential retest of the $120 support.
The recent gains in SOL price followed a broader altcoin market rally, which saw an 11% increase since Sept. 18, spurred by the US Federal Reserve's decision to cut interest rates. This shift toward a more accommodative monetary policy also fueled a rally in the S&P 500 stock index, which reached an all-time high on Sept. 19.
