Solana Token Surges 27%, Validators Vote on Supply Reduction Proposals

Solana's SOL token surged 27% last week and hit its highest price in two months, exceeding $94. This rally has pushed SOL above both its 50-day EMA at $79.04 and its 200-day EMA at $92.67, with these levels now acting as support.

The token is currently facing resistance at the May 11 high of $98.41, followed by the round-number level of $100. A daily close above $100 would open the path toward $112.52, according to analysts.

Validators are voting on three governance proposals (SGP 1, SGP 2, and SGP 3) through Thursday, with two of these proposals potentially reducing SOL supply by speeding up disinflation and increasing daily fee burns.