Solana Holds $120 Support: Here’s Why A Move Higher Could Be Next

Key Highlights:Solana defends the $120–$130 zone, a long-term support level with multiple historical bounces.NATIX partners with Grab to expand Solana-powered DePIN mapping into the U.S. and EU.Solana’s stablecoin supply jumps 154% in 2025, reflecting rising liquidity demand.Solana held above the key $120 support level, maintaining stability. It may have set the stage for a bullish reversal.Stablecoin inflows are surging, and a new DePIN partnership with Grab expands the blockchain’s real-world use. These trends could be reinforcing upward momentum together.Strong Support at $120 Builds a Key Price FloorSOL has continued to trade above the $120 level, which has been a critical support over the past year. On weekly candlestick charts, Solana price repeatedly reacted to this level as resistance during downtrends. During rallies, the same level served as a strong support zone.Source: XAfter SOL fell from above $250 to around $95, the latest bounce near $120 occurred. The price has recovered since then to $144.00. If SOL can hold above this level, it could be a base for a future move upward.Over the past two years of trading activity, the $120–$130 zone has been a rejection point and a springboard. So long as buyers hold this area, traders can expect sideways or upward action to continue.If Solana price breaks below this level for an extended period, bearish momentum could intensify. This may lead to a test of lower support levels as selling pressure increases.DePIN Partnership Expands Real-World Use CasesPrice movements are technical. However, new developments within the SOL ecosystem could provide long-term fundamentals.NATIX, a DePIN project on Solana, has joined forces with Grab to enhance crowdsourced mapping. This partnership aims to improve real-time mapping capabilities across Southeast Asia.Source: XGrab will supply its in-car hardware and AI tools to process and analyze 360-degree street-level images. NATIX will provide its user network and technology to collect data from drivers worldwide.“They’re buying the data that we generate to build their pipeline for the U.S. and for Europe,” said Alireza Ghods, co-founder of NATIX.The partnership seeks to break into new markets like the United States and the European Union. By doing so, NATIX and Grab can extend their reach outside Southeast Asia and increase global map coverage.These developments use Solana’s blockchain to reward participants and store data efficiently. It also demonstrates how blockchain projects are being integrated into existing firms.Grab’s model creates a mutually beneficial partnership by offering enterprise-grade AI tools and real-world deployment. Meanwhile, NATIX expands its technological footprint, strengthening its presence in the industry.Token and Stablecoin Activity Reflect Rising On-Chain DemandIn 2025, Solana’s network has been seeing growing on-chain activity. More than 1.2 million new tokens were created on the blockchain in April. Of these tokens, many were meme-based or community-driven, indicating strong interest from new developers and users.New SPL tokens | Source: XA recent report shows that daily new token creation peaked on April 15. On that day, nearly 55,000 SPL tokens were minted in a single day. Yet the activity remained strong throughout the month, with daily totals frequently topping 40,000 tokens.The increase came as more developers began using SOL because of its low fees and quick confirmation times.Solana Stablecoin Supply | Source: Token TerminalSince early 2025, the supply of stablecoins on Solana has surged by 154.39%. This sharp increase highlights growing demand and adoption within the network.Token Terminal’s chart shows that Solana’s stablecoin supply surged from approximately $5 Billion in January to over $13 Billion by May. This growth reflects increasing adoption and demand within the ecosystem.This rise indicates an increasing desire to transact on SOL with dollar-pegged digital currencies. The surge is more liquidity in the ecosystem, and traders often use stablecoins to move capital quickly. It also indicates that users use the network to do financial activity, not just speculate.Short-Term Risks Surface After Bug Fix and DeFi OutflowsDespite strong growth, Solana hit a short-term challenge this week. On May 4 and 5, the network witnessed $11 Million in DeFi outflows after a protocol bug fix. Users were concerned about the centralisation of the patch, and that caused a temporary dip in trust.Top bridged net flows (last 24H) | Source: ArtemisThey came after weeks of steady inflows into Solana-based lending and trading platforms. The $ 11 Million value is minor compared to the total locked assets on the network.However, it highlighted how users react to code changes. Perceived governance issues can also influence user sentiment and behavior. While this is the case, broader on-chain activity is still positive.Stablecoin supply is increasing, and the token creation rate is high, which means users are still using the network. If Solana continues to build around its $120 support zone and grow its ecosystem, the recent outflows may be temporary.DisclaimerThis article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.godfrey mwirigiThe post Solana Holds $120 Support: Here’s Why A Move Higher Could Be Next appeared first on The Market Periodical.