The U.S. Core CPI coming at 3.1% year-over-year, estimated at 3.2%, is lower than expected. With this lower-than-anticipated inflation, the crypto markets are responding positively, as Solana momentarily surpasses $130.
Currently, Solana is trading at $128, as it hints at a potential bullish recovery. Will this reversal in Solana result in a price surge to $170? Let’s find out.
Solana Price Analysis: SOL Eyes Recovery Toward $145
In the daily chart, the SOL price trend showcases a declining trend, reaching a swing low of $112. However, with a price surge of 6% on March 11, the bullish trend for Solana is gradually gaining momentum.
With an intraday gain of 1.94%, prolonging the bullish recovery, Solana has entered the streak of five consecutive red candles. Furthermore, with a potential V-shaped reversal, Solana is marking an early bounce-back from the S-1 pivot support level at $104.
With the recovery run, Solana is hinting at a potential bounce-back of $145 for the 20-day EMA.
Solana Flips Ethereum in 24-hour Revenue
Amid the short-term recovery and the declining U.S. inflation, Solana marks another record, surpassing Ethereum in 24-hour revenue. As per a recent post by SolanaFloor, the Solana network has recorded a 24-hour revenue of $442,000.
This marks a significant increase compared to Ethereum at $419,000. In the third position, Maker records a 24-hour revenue of $391,000.
SIMD-228 Proposal Nears Approval
As mentioned in our last article, the SIMD-228 protocol proposal in Solana is being discussed to cut SOL inflation by nearly 80%. As per the recent vote status, the proposal is currently passing with 67.97% yes of yes+no votes which exceeds 67%.
However, 56% of stakers have not voted yet. The voting continues until the end of Epoch 755.
Solana Derivatives Signal Rising Open Interest
As Solana stands at a crossroads, the derivatives market witnessed a surge in open interest to reach $3.7 billion. However, the funding rate remains negative at 0.0065%, reflecting the willingness of sellers to pay the premium and hold short positions.
The long-to-short ratio over the past 24 hours is at 0.9767, reflecting a minor surge of selling accounts. The liquidations have risen to $13.12 million, with short liquidations accounting for $7.54 million and long liquidations at $5.58 million. While Solana’s short-term price action remains volatile, some investors are already eyeing other altcoin opportunities.
