Despite the strong numbers, the network has faced a drop in revenues and activity

During Q1, Solana ranked number 1 among all the other blockchains by DEX trading volume, capturing 39.6% of the market and 52% in January alone.

Solana's performance in Q1 was nothing short of stellar, especially in January when it captured 52% of the total DEX trading volume among all the other blockchains. However, despite the impressive figures, the network has encountered a slowdown in revenues and activity, Grant mentioned.

After attaining a peak of $35.9 billion in daily DEX volume by mid-January, it had dropped below a billion by mid-march before recovering above $2.5 billion, nearly matching Ethereum.

The shift towards utility and stablecoins from memecoins has deprived the SOL price of yet another bull run.

Moreover, there has been substantial interest in Solana from institutions as Galaxy Digital pulled a huge amount of SOL from CEX and deposited nearly $100M in ETH. This raised the speculation of whether the institution is dumping Solana.

The crypto analytics firm, DeFi Direct, pointed out on March 7 that Galaxy Digital pulled nearly $100 million in ETH from CEXs and deposited it on Ethereum in a single day.

This comes after the reports of the institutional interest in Solana (SOL) arising from massive SOL withdrawals from CEXes. Since the start of the week, the total number of SOL withdrawals from CEX amounted to $77.5 million.

"Maybe Galaxy Digital is dumping Solana. They pulled nearly $100M in ETH from CEXes and deposited it on Ethereum today."

However, the transfer from Galaxy Digital squashed the bearish possibilities, as they have now withdrawn over 600K SOL from exchanges and staked over 460K in the past 4 days, as suggested by Lookonchain.

Solana Golden Cross on the Horizon?

With this, the SOL price has raised the possibility of a bullish breakout as the technicals have turned bullish. The latest rebound from the lows has helped the token to break out of the descending parallel channel. After the breakout from the pattern, the bulls have managed to keep up the trend of the rally above the resistance of the channel.

On the other hand, the Supertrend has changed to bullish after being bearish since February, validating a bullish reversal. Besides, the Ichimoku cloud has also experienced a bullish crossover, substantiating a bullish claim.

With this, the price, which has discovered a new support at the 50-day MA, is expected to head towards a ‘Golden Cross’ and surpass the 200-day MA in the coming days.

Meanwhile, a continued rise of 30% to reach $150 may trigger a Golden Cross, which may further push the Solana (SOL) price to $200 before the end of H1, 2025.