Solana is making waves in the crypto market as it regains the $180 threshold for the first time since mid-February, driven by improving decentralized finance (DeFi) metrics and growing market interest.
The cryptocurrency has experienced a notable price increase, rising 6% in the past 24 hours and a substantial 22% over the last week. Solana’s open interest has also surged by 11.08%, according to Coinglass data, indicating an influx of new traders and increased investor confidence.
Solana’s DeFi ecosystem has shown strong growth, with its total value locked (TVL) climbing from $7.5 billion at the start of May to $9.6 billion as of the latest data. Key platforms such as Marinade (up 56%), Jito (up 41%), and Raydium (up 78%) are leading the charge. Additionally, decentralized exchange volumes have seen a week-over-week increase, rising from $18 billion to $22 billion.
Chain activity remains robust, with Solana’s revenue and transaction fees steadily increasing over the past month, nearing three-month highs. With 65% of SOL staked, the combination of rising demand from DeFi and a limited supply of tokens could fuel further price growth.
However, not all metrics are entirely positive. Solana’s stablecoin market capitalization has dropped by 8% to $11.7 billion over the last week. Additionally, an 8% funding rate suggests a bullish sentiment in the market, though it also often precedes short-term corrections.
From a technical perspective, Solana’s price remains strong, trading above all major moving averages, which signals a solid uptrend. The 10, 20, 50, 100, and 200-day exponential moving averages (EMAs) and simple moving averages (SMAs) are all showing buy signals. However, the relative strength index (RSI) is at 71, indicating overbought conditions that could lead to a correction.
Solana’s Bollinger Bands are widening, and the cryptocurrency is currently trading near the upper band, often a precursor to consolidation or correction. Immediate resistance is seen around $185, and if Solana breaks through this level, it could be on track to reach the $200 mark. On the downside, support is located at $157 (20-day EMA) and $130, where the lower Bollinger band aligns with previous consolidation levels.
Looking forward, bullish momentum could persist if Solana successfully breaks the $185 resistance with strong volume. A rejection at this level, however, may trigger a pullback to key support levels. Despite still being 39% below its all-time high of $295, factors such as increasing institutional interest, potential ETF approvals, and upcoming upgrades like Firedancer make the $200 target seem more achievable if market conditions remain favorable.
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