Solana (SOL) Hits $195 as $538M Gains Spark $200 Breakout Hopes

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Key Takeaways:

• SOL closed at $195, its highest level in five months, unlocking $538M in realized gains.
  
• Staking and TVL surged, with Solana pulling in nearly $800M in new capital.
  
• FOMO is rising, as 1.5M new wallets entered the market near local highs, signaling fresh demand.

Solana (SOL) is showing strong bullish momentum as it closed July 21 with a powerful 7.88% daily candle at $195—its highest daily close in nearly five months. The breakout was backed by $538 million in realized gains, signaling significant activity from long-dormant holders exiting at profit.

Despite a slightly measured follow-up session with a 4.61% intraday move, SOL continues to hold above key support levels. Analysts suggest that if this resilience sustains, Solana could be primed for a strong continuation toward higher levels.

Staking Inflows Reinforce Solana’s Uptrend

Solana’s bullish breakout is not just speculative—it’s underpinned by a solid rise in staking activity. Historically, SOL price surges have correlated with increases in total value locked (TVL), and this rally is no exception.

Over the past week, Solana’s TVL jumped by nearly $800 million, reclaiming the $9.95 billion mark for the first time in 23 weeks. This surge reflects renewed confidence from investors locking in capital for yield, marking a strategic shift from passive holding to active participation in the network.

This capital rotation is not just a play against Ethereum, though the SOL/ETH pair did rally 12% in under 48 hours. Instead, it suggests conviction-backed flows into protocol-level returns, adding fuel to the bullish fire.

FOMO Kicks In as Wallets Surge Around $195

Adding to the bullish sentiment is the rapid increase in network activity. Solana recently cleared a key supply zone at $185, flipping a major cost basis cluster into support. The move left many previously underwater holders in profit, while attracting fresh capital into the market.

Glassnode data shows a 26% spike in new addresses, with 1.5 million wallets created near the $195 level. This behavior indicates fear of missing out (FOMO), with new participants entering at local highs, potentially absorbing the profit-taking pressure from earlier investors.

Solana Could Clear $200 as Structural Bull Trend Holds

While staking is reducing SOL’s circulating float, the surge in demand and fresh wallet activity is soaking up sell-side pressure. The result? A structurally bullish market with room for continuation.

If SOL maintains this momentum and clears the $200 resistance, it could trigger the next leg higher, supported by strong conviction and strategic capital rotation.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

Also Read: Solana (SOL) Price Jumps 34% to $190 — Is a Breakout to $300 or $416 Next?