Solana's Liquidity Setup Ignites Hope for $120 Breakout

Solana's recent price action has been impressive, especially considering a massive sell-side pressure. On September 26th, an unidentified whale transferred 500,000 SOL to Binance, valued at approximately $60.5 million, with an average cost basis of around $121.

The Solana community was surprised by the whale's move, but what happened next was even more remarkable. Despite the potential sell-side pressure, SOL barely flinched, closing the day down only 0.3% and jumping 0.4% the following day, hovering around the $120 level.

This shows that Solana is able to absorb massive amounts of sell-side pressure and continue holding its short-term structure. Given this momentum, it's no surprise that the smart money is increasing its positions in Solana. Bitfinex whales' SOL long positions skyrocketed, illustrating a substantial increase in bullish bets.

The demand for Solana seems to be gaining significant traction, with the rise of long positions and considerable accumulation in ETFs pushing total AUM to $2.283 billion. This boosts SOL's price resilience, as underlying bids and on-chain activity support the move. However, what if the on-chain liquidity is beginning to converge with the broader macro liquidity?

Solana's liquidity setup is getting too strong to ignore. Global money supply climbed to a new all-time high of $103.66 trillion in August, suggesting a significant expansion of available liquidity in the final quarter of the year. The Fed, ECB, Bank of Japan, and PBOC added around $1 trillion in August, marking the 10th consecutive monthly increase.

This liquidity expansion could have a significant impact on Solana, as its total stablecoin supply has increased by more than 5% this week, adding over $800 million in liquidity to the network. The surge pushed Solana's total stablecoin market cap to a new all-time high of more than $17 billion.