In the past day, Solana‘s price has surged by 1.88%, driven by a broader market rally. This uptick has allowed SOL investors to reclaim the crucial 200-day moving average, reinforcing the ongoing upward momentum. With promising bullish patterns emerging and network revenues on the rise, this layer-1 cryptocurrency shows notable potential for continued gains.
Traders Predict Significant Breakout for Solana
A recent evaluation by KongTrading, a recognized cryptocurrency analyst, indicates that a breakout for Solana (SOL) could be imminent if it surpasses its current wedge formation. The analysis highlights converging trend lines that have provided dynamic support and resistance for SOL since March 2024.
“If this wedge in SOL price breaks upward, we should see $1000 very soon,”
What Does the Increasing TVL Mean for Solana?
The daily chart for Solana reveals a lateral trend over the last seven months, with fluctuating highs and lows indicating mixed market dynamics. However, the rising Total Value Locked (TVL) suggests an optimistic outlook for the cryptocurrency.
Data from DeFiLlama shows that Solana’s TVL has steadily increased from $3.46 billion in April to $5.43 billion, representing a 57% growth. This development signals a resurgence of confidence in Solana’s ecosystem as more liquidity gets locked in decentralized finance protocols.
How Do Geopolitical Factors Impact Solana’s Price?
Currently, Solana’s price stands at around $143, with a market capitalization of $67.18 billion. Should tensions in the Middle East subside, the cryptocurrency could climb by as much as 28% towards wedge resistance at $183. This upward movement could bolster bullish sentiment by reestablishing daily exponential moving averages (EMAs) as support levels.
However, if the market experiences a correction, Solana might retest the $120 mark, risking a 15% decline. Traders should consider the following points:
- Market conditions offer potential for growth alongside inherent risks.
- Increased TVL boosts confidence in the Solana ecosystem.
- Technical analyses suggest a possible rise, dependent on market dynamics.
- Geopolitical events could significantly influence Solana’s price trajectory.
The trends in Solana’s market performance indicate promising opportunities for traders, underscored by the growing TVL and favorable technical indicators. Nonetheless, external factors such as geopolitical developments remain crucial for the future trajectory of SOL’s price.
