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Solana Price Analysis of March 5, 2025: SOL Recovered From $130 Dip and Eyes to Break $146 Resist...
Solana continues to face challenges in recovering from its recent decline. Despite occasional bullish attempts, SOL price today remains under pressure, struggling to break key resistance levels. Market sentiment leans bearish, with selling pressure limiting upward momentum. Liquidity shifts and technical patterns indicate that traders are closely monitoring the next support level. While short-term recoveries have emerged, the overall trend remains uncertain. In this Solana price analysis, we’ll examine the latest price movements and assess whether the current outlook suggests a potential recovery or further downside.
Solana Reaches $147 but Struggles to Hold Gains
The trading day started with a slight upward move, but Solana price analysis shows that the price faced resistance at $145.09. Shortly after 00:30 UTC, the MACD line formed a death cross, initiating a downward channel. Oversold conditions on the RSI at 1:45 UTC pushed the price lower. A golden cross appeared at 2:35 UTC, signaling an upward move, but the downward channel remained intact. At 6:20 UTC, another death cross on the MACD line pushed the price further downward. RSI indicated oversold conditions at 13:10 UTC and 13:25 UTC, leading to a deeper decline.
Chart 1, Analyzed by ShwetaCW, published on TradingView, March 5, 2025
A golden cross at 16:05 UTC briefly triggered a bullish move, but the price found support at $130.68. Another golden cross at 16:55 UTC signaled the start of an upward trend, leading to an overbought condition at 19:00 UTC. This pushed the price toward resistance, with another overbought signal at 21:25 UTC helping the price breakthrough. Solana reached its daily high at $147 but struggled to hold the breakout. The resistance level rejected further gains, and a death cross soon after indicated a shift in momentum. The price failed to sustain above resistance and fluctuated, unable to confirm a breakout.
Solana on March 5: Struggles Continue Amid Key Crossovers
The trading day of March 5th began with a downward trend due to the previous day’s death cross. SOL price fluctuated downward, with a golden cross at 1:30 UTC briefly pushing it up, but resistance held firm. Another death cross at 3:20 UTC triggered further declines, pushing the price back into the previous trading range. An oversold RSI at 4:25 UTC added downward pressure before a golden cross at 4:45 UTC signaled a potential upward move. However, the price remained volatile, struggling to gain strong momentum.
Solana Price Prediction: Will SOL Break $145.09 or Drop Below $130.68?
Over the past 24 hours, Solana price analysis shows SOL experiencing a breakdown, a downward channel, and an attempted breakout, only to re-enter another downward trend. If bullish momentum builds, the SOL price today could break above the current resistance of $145.09, potentially leading to a breakout. However, if selling pressure persists, SOL may lose support at $130.68, pushing it into a deeper decline. Traders should monitor key levels closely, as market sentiment remains uncertain. Based on this Solana price prediction, a breakout could drive further gains, while a breakdown may keep bears in control.
The post Solana Price Analysis of March 5, 2025: SOL Recovered from $130 Dip and Eyes to Break $146 Resistance Level appeared first on Coinfomania.
Solana’s Biggest Change Yet? 2 Protocol Upgrades Set to Shake the Network With a 95% Revenue Drop...
Solana validators will vote on two major protocol upgrades; these proposals focus on changing staking incentives and adjusting inflation mechanisms. The planned Solana protocol upgrades have sparked heated discussions as critics fear they might significantly reduce validator revenues. Supporters believe these updates will improve the network’s long-term sustainability. The timing adds to the stakes as digital asset ETFs are gaining traction. Many investors are closely watching the outcome.
Solana Validators to Vote on Controversial Upgrades
Two protocol upgrades for Solana are set to be voted on by validators this March. The first of these proposals is about ensuring sufficient rewards for stakers. The second proposal is set to change and adjust the inflation rates for the SOL token. These Solana Improvement Documents, or SIMDs, have caused major controversies. This is because, according to VanEck’s head of digital asset research, these upgrades will reduce validator revenue by as much as 95%.
Boosting Staking Rewards: Solana’s Big Update Explained
The first proposal, which will be voted on March 6, is called SIMD 0123. This update will increase the SOL staking rewards. Staking is about putting SOL tokens in a lock in a validator’s system. This way, the staked SOL token is used as collateral, and shakers can earn payouts from the network. Staking also comes with its risks, as stakers can lose their SOL as collateral. The staked SOLs are also in danger in case of a security risk or weakness in the validator’s system.
To increase SOL staking rewards, this update will add a mechanism that distributes the Solana network’s priority fees among validator stakers. These fees are collected from traders who want to make their transactions faster. These fees represent 40% of the Solana revenue, and before this update, validators did not share these fees with stakers. Till now, validators only paid voting rewards and other such rewards. The SIMD 0123 update also aims to reduce off-chain trading and encourage on-chain trading and transaction.
Solana’s Inflation Overhaul: a Risky Move?
The second proposed update, which aims to lower inflation rates, was written mostly by Multicoin Capital’s Vishal Kankani. This venture capital firm has a considerable position in Solana’s most popular staking pool. Jito is now used by more than 93% of Solana validators, as it maximizes block-building earnings. Sigel VanEck’s head of digital asset research has called this update the “most impactful proposal under consideration.”. Called SIMD 0228, this Solana update will change the SOL’s inflation. This proposal makes inflation inversely track the percent of token supply staked.
Solana has several upcoming protocol upgrades, known as SIMDs, aimed at enhancing its technical capabilities and economic framework. These changes could help stabilize and strengthen Solana's position in the crypto ecosystem moving forward.Solana recently implemented SIMD 096…
— matthew sigel, recovering CFA (@matthew_sigel) March 4, 2025
Sigel added this update is “reducing dilution and lowering selling pressure from stakers who treat staking rewards as income.”. As reported in February, Solana’s inflation rate was much more than its targeted 1.5% amount. The Solana inflation rate is lower than it started at 8% and stands at 4%. Solana’s inflation is currently in decline, with a rate of 15% per year. “While these changes may reduce staking rewards, we believe lowering inflation is a worthy goal that strengthens Solana’s long-term sustainability,” Sigel added. Matthew Sigel mentioned in his X post that this change could jeopardize smaller operators.
Solana’s Evolution: Upgrades and the ETF Revolution
These proposals come at a time when the trend of digital asset-based ETFs is on the rise. Asset managers are now encouraging regulators to approve and list SOL ETFs in US exchanges. The feature of ETF staking has also been mentioned, with issuers seeking permits from US regulators. Based on Bloomberg’s predictions, SOL ETFs have a 70% chance of being approved in 2025. So, with Solana protocol upgrades and ETFs in the way, SOL has a crucial year ahead.
The post Solana’s Biggest Change Yet? 2 Protocol Upgrades Set to Shake the Network with a 95% Revenue Drop for Validators appeared first on Coinfomania.