Solana Sees $120M Liquidity Inflow Amid Memecoin Resurgence

Over the past 30 days, the Solana network has experienced a significant surge in liquidity inflows, with over $120 million in liquidity bridged from other blockchains. This influx signals renewed confidence in the Solana network, with the highest amount transferred from Ethereum at $41.5 million, followed by $37.3 million from Arbitrum. Other notable contributors include Base, BNB Chain, and Sonic, which moved $16 million, $14 million, and $6.6 million, respectively.

This return of liquidity to Solana contrasts sharply with the network's recent challenges. Following the LIBRA memecoin scandal in Argentina, which involved President Javier Milei, Solana saw a significant outflow of $485 million to other blockchains like Ethereum and BNB Chain. The current liquidity influx coincides with a resurgence in memecoins, with POPCAT, FARTCOIN, BONK, and WIF experiencing price rallies of 79%, 51%, 25%, and 21% respectively, over the past seven days.

Despite the positive signs, the total generated fees for March were just under $46 million, a stark contrast to the peak of over $400 million in January 2025. Currently, the total fees generated for April are roughly $22 million.

From a technical perspective, Solana remains in a bearish trend on the 1-day chart. For a bullish trend shift, SOL must close a daily candle above $147. Currently, Solana is trading below the $140 level, with the 50-day exponential moving average acting as strong resistance. A bullish close above this level would increase the likelihood of a positive trend reversal, but SOL prices have stalled at current levels.

On a lower time frame chart, Solana exhibited a bearish divergence between the price and the relative strength index (RSI) indicator. Historically, this setup has signaled a correction period for Solana. Since January, SOL has experienced four bearish divergences, each followed by a price decline. The current bearish divergence is similar to previous setups, which took place after the price moved temporarily above the 50-day and 100-day EMA on the 4-hour chart, eventually leading to a price drop.

This pattern suggests that Solana could follow a similar path in the coming days. The immediate area of interest for a bounce is between $115 and $108. Additionally, Glassnode reported a significant shift in Solana’s realized price distribution, with over 32 million SOL bought at the $130 level over the past few days. This represents 5% of the total supply, indicating that the $130 level could serve as strong support in the future. Below $129, there are 18 million SOL at $117.99, while above, 27 million SOL sit at $144.54. In the short term, $144 could act as resistance and $117 as the lower bound of the price range, with $129 serving as the key pivot zone.