Solana (SOL) has been experiencing limited price fluctuations recently despite a significant increase in token accumulation. The price has shown stability in May, possibly due to overheating in the altcoin market.

Although this stability should be approached cautiously, the market sentiment is positive, indicating potential gains for Solana in the near term.

Investors are continuing to accumulate Solana, with a notable decrease of 2.2 million SOL (equivalent to about $381 million) on exchanges over the last 10 days. This decline in available supply suggests ongoing accumulation by investors, driven by factors like optimistic market sentiment, FOMO, and expectations of future price appreciation.

The reduced supply signifies growing investor confidence, leading many to hold onto their SOL rather than selling. As accumulation increases and exchange supplies diminish, there is a likelihood of upward pressure on the price over time.

Analyzing Solana's market momentum reveals a potential for volatility. Technical indicators, such as the narrowing Bollinger Bands, hint at a possible price squeeze and increased volatility in the future.

While a bullish breakout resulting from the squeeze could boost Solana's price, the narrowing bands also hint at a period of consolidation before any significant movement.

Solana's price has remained stagnant throughout May due to previous overheating, but this pause may set the stage for an upward movement as the broader market displays positive signals and accumulation trends persist.

Currently at $173, Solana is testing crucial support levels, with $178 being a key level to secure for any potential rally. Breaking above $180 and surpassing $188 could indicate the beginning of an upward trend.

A successful breakout above these levels would suggest further upward momentum. Conversely, failure to maintain support at $178 might lead to a decline below $168 and potentially towards $161, undermining the bullish outlook and indicating downside risks for the token.