Solana has once again captured the spotlight as its price surges past the $180 mark, marking its highest level since mid-February.
This resurgence is fueled by strong decentralized finance (DeFi) metrics, increased trading activity, and technical indicators favoring bullish momentum.
The price of SOL has risen 6% in the last 24 hours and 22% over the past week, demonstrating renewed confidence among investors.
A closer look at market data from Coinglass reveals that Solana’s open interest has grown by 11.08%, indicating an influx of new contracts, a key sign of growing investor participation and sentiment.
DeFi Ecosystem Growth Driving Solana’s Upsurge
According to DeFiLlama, Solana’s total value locked (TVL) has surged from $7.5 billion at the beginning of May to $9.6 billion, further reinforcing bullish sentiment.
Some of the leading DeFi protocols contributing to this increase include Marinade, which saw a 56% rise, Jito, up 41%, and Raydium, which skyrocketed by 78%.
Additionally, decentralized exchange (DEX) volumes have expanded significantly, climbing from $18 billion to $22 billion in just one week.
This heightened on-chain activity has also translated into rising revenues and transaction fees, which have been climbing steadily for the past four weeks, reaching three-month highs.
With 65% of all SOL tokens staked, the combination of high DeFi demand and limited circulating supply could further drive price appreciation.
Market Signals: Strength with a Side of Caution
Despite the overwhelmingly positive indicators, not all metrics point to a smooth rally.
Solana’s stablecoin market capitalization has dipped by 8%, currently sitting at $11.7 billion, signaling some capital outflows.
Additionally, funding rates stand at 8%, suggesting that traders are paying a premium to hold long positions—a sign of strong bullish sentiment but also a potential precursor to short-term corrections.
From a technical analysis perspective, Solana is trading well above major moving averages, including the 10, 20, 50, 100, and 200-day EMAs and SMAs, all of which show clear buy signals.
This reaffirms the strength of the current uptrend. However, the Relative Strength Index (RSI) is at 71, indicating overbought conditions that may trigger pullbacks or consolidation periods.
Further insights from Bollinger Bands reveal increasing volatility, with SOL currently hovering near the upper band.
What you should know
- Historically, this signals a potential correction or price stabilization in the near term.
- Key resistance sits at $185, while a breakout beyond this level could pave the way to $200 and beyond.
- Conversely, support levels lie near $157 (20-day EMA) and $130, where the lower Bollinger band aligns with previous consolidation zones.
What’s Next for SOL?
Looking forward, Solana’s bullish trajectory may continue if it decisively breaks past the $185 resistance zone with strong trading volume. A rejection at this level, however, could lead to a retracement toward support levels, offering buyers another entry point.
Although Solana remains 39% below its all-time high of $295, institutional interest, potential ETF approvals, and upcoming upgrades like Firedancer suggest that conditions are aligning for further gains.
If market trends persist and broader crypto sentiment remains strong, Solana could be on track for a fresh attempt at the $200 milestone.
