Solana (SOL) Price Recovery

Solana (SOL), the sixth-largest cryptocurrency by market capitalization, has continued its price recovery push. In the last 30 days, despite plummeting by 45%, SOL has maintained support at the $160 level. However, market activity suggests likely bullish movement.

Staked Solana Signals Supply Squeeze Potential

Lookonchain, an analytics platform, has spotted a significant transaction involving Solana. Notably, 87,328 SOL valued at approximately $14.8 million were withdrawn from the Binance exchange.

> A newly created wallet withdrew 87,328 $SOL ($14.8M) from #Binance in the past 2 days and staked it. Lookonchain
> — Lookonchain (@lookonchain) February 19, 2025

Interestingly, this whale transaction came from a virgin wallet, suggesting it is from a new investor or entity. The withdrawal took place over two days, after which the owner decided to stake it.

Analysts say the volume suggests that holders have strong buying interest. The decision to stake the SOL also marks a positive shift for the coin, contributing to market scarcity via the staking move.

Generally, when investors make large withdrawals to self-custody and stake, it indicates long-term confidence in the asset, as the investor is not seeking short-term selling opportunities.

Experts note that the staking move could reduce Solana’s liquidity supply, creating scarcity that can impact prices if demand remains strong.

As of this writing, demand has yet to register an uptick as trading volume is down by 10.96% to $5.08 billion. However, SOL is slightly up by 0.77%, trading at $171.07 in the last 24 hours, according to CoinMarketCap data.

ETF Prospects Add to Solana’s Momentum

Meanwhile, other developments in the Solana space that could push a rebound for the coin include the acknowledgment of the Canary Capital filing. The asset manager joined others to file for an exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).

The SEC also acknowledged the Solana ETF filing from Grayscale earlier this month. Predictions suggest that a Solana ETF might be the next to receive regulatory approval.