Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama show that the Total Value Locked (TVL) on Solana applications grew significantly over the past week. The platform’s TVL rose to $1.3 billion worth of tokens, its highest level since July 2022 and up from the $400 million recorded in November.
These factors, coupled with the global crypto market sentiment, have boosted the Solana price, extending its year-to-date gains to more than 832%, with most growth recorded in the past two months alone.
Solana Price Outlook
The daily chart shows that the Solana price has been on a strong upward trajectory for the past few weeks, breaking above the bullish ascending channel shown in yellow. The altcoin hit an intraday high of $99.49 on Friday before retreating. Solana remains above the 50-day and 200-day exponential moving averages and the 100-day and 200-day simple moving averages. Its Relative Strength Index has moved higher to the overbought territory, highlighting an increase in buying pressure.
Solana price needs to break above the critical level of $100 for further future gains. A breach above this level might pave the way for a jump to the next resistance at $120. However, we cannot rule out a drop below the immediate support at $80.55, which will invalidate the bullish thesis.
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